Q2 2025 SentinelOne Inc Earnings Call

August 27, 2024

Operator: --fiscal year, 2025 Earnings Conference Call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Doug Clark, Vice President of Investor Relations. You may pursue

Good afternoon. Thank you for attending the Sentinel-1 second quarter fiscal year. It's going to be 25 earnings conference call. My name is Cameron and I'll be your moderator for today.

All lines were muted during the presentation portion of the call with an opportunity for questions and answers at the end.

Doug Clark: I would now like to pass the conference over to your host, Doug Clark, Vice President of Investor Relations. You may pursue afternoon, everyone.

Doug Clark: I would now like to pass the conference over to your host Doug Clark, Vice President of Investor Relations. You may proceed after noon everyone and welcome to send to the ones earnings call for the second quarter of fiscal year 2025, which ended July 31, 2024. With us today, our Tomer Weingarten CEO and Dave Bernhardt CFO.

Doug Clark: Welcome to SentinelOne's Earnings Call for the second quarter of fiscal year 2025, which ended July 31, 2024. With us today, our Tomer Weingarten CEO and Dave Bernhardt CFO. Our press release and the shareholder letter were issued earlier today and are posted on the Investor Relations section of our website. This call is being broadcast live via webcast and an audio replay will be available on our website after the call concludes.

Speaker Change: Our press release in the shareholder letter were issued earlier today and are posted on the investor relation section of our website. This call is being broadcast live via webcast and an audio replay will be available on our website after the call concludes.

Doug Clark: Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about future events and financial performance, including our guidance for the third fiscal quarter in full fiscal year 2025, as well as long-term financial targets. We caution you that such statements reflect our best judgment based on factors currently known to us and that our actual events or results could differ materially. Please refer to the documents we file from time to time with the SEC in particular, our annual report on Form 10K and our quarterly reports on Form 10Q.

Speaker Change: Before we begin, I would like to remind you that during today's call we will be making forward-looking statements about future events and financial performance, including our guidance for the third fiscal quarter and full fiscal year 2025, as well as long-term financial targets.

Speaker Change: We caution you that such statements reflect our best judgment based on factors currently known to us and that our actual events or results could differ materially.

Speaker Change: Please refer to the documents we filed from time to time with the SEC in particular, our annual report on Form 10K and our quarterly reports on Form 10K.

Doug Clark: These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements. Any forward-looking statements made during this call are being made as of today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Speaker Change: The documents contain an identifying important risk factors and other information that may cause our actual results to differ materially from those contained in our forward-looking statements.

Speaker Change: Any forward-looking statements made during this call are being made as of today. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information.

Speaker Change: Access is required by law. We assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could different materialies in those anticipated in the forward-looking statements, even if new information becomes available in the future.

Doug Clark: During this call, we will discuss non-gap financial measures unless otherwise stated, these non-gap financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP and non-GAAP results, other than with respect to our non-GAAP financial outlook is provided in today's press release and in our shareholder letter. These non-GAAP measures are not intended to be substitute for GAAP results. Our financial outlook excludes stock-based compensation expense, employer payroll tax, and employee stock transactions. Amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gains and losses on strategic investments, which cannot be determined at this time and are therefore not reconciled in today's press release. And with that, let me turn the call over to Toma Weingarten, CEO of Sentinel One.

Speaker Change: During this call, we will discuss non-gap financial measures, unless otherwise stated. These non-gap financial measures are not prepared in accordance with generally accepted accounting principles.

Speaker Change: A reconciliation of gap and non-gap results, other than with respect to our non-gap financial outlook, is provided in today's press release and in our shareholder letter. These non-gap measures are not intended to be a substitute for gap results.

Speaker Change: Our Financial Outlook excludes.based compensation expense, employer payroll tax and employee stock transactions, and our decision expense of acquired intangible assets.

Speaker Change: Acquisition-related compensation costs, restructuring charges, and gains and losses on strategic investments, which cannot be determined at this time and are therefore not reconciled in today's press release. And with that, let me turn the call over to Tomer Weingarten CEO of Sentinel-1.

Tomer Weingarten: And with that, let me turn the call over to Toma Weingarten, CEO of Sentinel One. Good afternoon, everyone, and thank you for joining our fiscal second quarter earnings school. We reported strong results and exceeded our expectations on all keen matrix including ARR revenue, gross margin, and operating margin. Our teams executed well during the quarter. We maintain our industry-leading revenue growth and set new company records for gross, operating, and net income margin.

Tomer Weingarten: Good afternoon everyone and thank you for joining our fiscal second quarter earnings call. We reported strong results and exceeded our expectations on all key matrix including ARR, revenue, gross margin and operating margin.

Tomer Weingarten: Our team's executed well during the quarter.

Tomer Weingarten: We maintained our industry leading revenue growth and set new company records for gross, operating, and net income margin. Importantly, we achieved the significant profitability milestone, our first ever quarter of positive net income and earnings per share.

Tomer Weingarten: Importantly, we achieved the significant profitability milestone our first-ever quarter of positive net income and earnings per share. This is a tremendous achievement and I would like to congratulate all Sentinel's who made this possible. In addition, our Q2 net new ARR performed our expectation by a double-digit percentage. And we continue to expect new business growth trends to improve in the second half of the year.

Tomer Weingarten: This is a tremendous achievement and I would like to congratulate all sentinels who made this possible.

Tomer Weingarten: In addition, our Q2 net-new ARR out-performer expectation by a double-digit percentage.

Tomer Weingarten: We continue to expect new business growth brands to improve in the second half of the year.

Tomer Weingarten: Based on our business and go-to-market momentum, we're also raising our revenue guidance for fiscal year 25. Superior technology is the cornerstone of how we empower our partners and customers to build more resilient enterprises, SentinelOne leads the industry with best-in-class AI-powered security and customer transparency. These are our guiding principles. Mission critical businesses around the world rely on our technology, platform architecture, and engineering best practices. As I mentioned in a prior earnings call, bigger brands do not mean better security.

I would now like to pass the conference over to your host, Doug Clark, Vice President of Investor Relations. You may pursue

Tomer Weingarten: Based on our business and go to market momentum, we're also raising our revenue guidance for fiscal year 25.

Doug Clark: Good afternoon, everyone, welcome to SentinelOne's Earnings Call for the second quarter of fiscal year 2025, which ended July 31st, 2024. With us today, are Tomer Weingarten CEO and Dave Bernhardt CFO. Our press release and the shareholder letter were issued earlier today, and are posted on the Investor Relations section of our website. This call is being broadcast live via webcast and an audio replay will be available on our website after the call concludes. Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about future events and financial performance, including our guidance for the third fiscal quarter in full fiscal year 2025, as well as long-term financial targets. We caution you that such statements reflect our best judgment based on factors currently known to us, and that our actual events or results could differ materially. Please refer to the documents we file from time to time with the SEC in particular, our annual report on Form 10K and our quarterly reports on Form 10Q.

Tomer Weingarten: Superior Technology is the cornerstone of how we empower our partners and customers to build more resilient enterprises.

Tomer Weingarten: Central One leads the industry with best in class AI power security and customer's transparency. These are our guiding principles.

Tomer Weingarten: Mission Critical Businesses around the world rely on our technology, platform architecture, and engineering best practices.

Doug Clark: Before we begin, I would like to remind you that during today's call, we will be making forward-looking statements about future events and financial performance, including our guidance for the third fiscal quarter in full fiscal year 2025, as well as long-term financial targets. We caution you that such statements reflect our best judgment based on factors currently known to us, and that our actual events or results could differ materially. Please refer to the documents we file from time to time with the SEC in particular, our annual report on Form 10K and our quarterly reports on Form 10-Q.

Speaker Change: As I've mentioned in a prior earnings call, bigger brands do not mean better security.

Tomer Weingarten: Substandered platform architectures are extremely risky and can cause single points of failure. This is evidenced by the string of recent breaches at Microsoft and the largest IT outage in history caused by our direct competitor, CrossRike. The dependency on fragile software can rapidly disrupt our way of life because billions in damages to the businesses they're supposed to protect. Self-proclaimed industry leadership and over-zealous marketing can create a false perception of reliability. Eventually, the end user suffers, which is why we must focus on facts, not fiction. Operational hygiene and process controls are essential for any reliable software. Anything short of that is a breach of customer trust.

Speaker Change: Substandard platform architectures are extremely risky and can cause single points of failure. This is evidenced by the string of recent breaches at Microsoft and the largest IT Outage in history caused by our direct competitor, Crosswike.

Speaker Change: The dependency on fragile sulfur can rapidly disrupt our way of life, it was billions in damages through the businesses they're supposed to protect.

Speaker Change: Self-proclaimed industry leadership, and over-zillist marketing, can create a false perception of reliability, eventually the end-user suffers.

Speaker Change: Which is why we must focus on facts, not fiction.

Speaker Change: Operational hygiene and process controls are essential for any reliable software. Anything short of that is a breach of customer trust.

Tomer Weingarten: Another big takeaway from recent events is this, architecture matters. SentinelOne's platform and patented behavioral AI security approach do not require constant anti-virus-like updates, detection delays, or configuration changes to secure enterprises. Period. Singularity is purpose-built to deliver top-tier autonomous security without requiring extensive integration into the kernel, the most sensitive part of an operating system, where even minor errors can cause significant disruption. To be clear, the combination of deployment processes fully controllable by the customer and advanced behavioral AI architecture significantly improves security and operational resilience.

Doug Clark: Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Speaker Change: and another big takeaway from recent events is this, architecture matters. Central wants platform in patents and behaviourally eye security approach. Do not require constant anti-virus-like updates, detection delays, or configuration changes to secure enterprises. Period.

Doug Clark: During this call, we will discuss non-GAAP financial measures unless otherwise stated, these non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP and non-GAAP results, other than with respect to our non-GAAP financial outlook is provided in today's press release and in our shareholder letter. These non-GAAP measures are not intended to be substitute for GAAP results. Our financial outlook excludes stock-based compensation expense, employer payroll tax, and employee stock transactions.

Singularity: Singularity is purpose-built to deliver top tier autonomous security without requiring extensive integration into the kernel, the most sensitive part of an operating system, or even minor errors can cause significant disruption.

Singularity: To be clear, the combination of deployment processes fully controllable by the customer and the advanced behavioral AI architecture, significantly improved security and operational resilience. I'll elaborate on this later.

Doug Clark: Amortization expense of acquired intangible assets, acquisition-related compensation costs, restructuring charges, and gains and losses on strategic investments, which cannot be determined at this time and are therefore not reconciled in today's press release. And with that, let me turn the call over to Tomer Weingarten, CEO of SentinelOne.

Tomer Weingarten: I'll elaborate on this later.

Tomer Weingarten: As always, please read our shareholder letter published on the Investor Relations website, which provides more detail. Let's review the details of our second quarter performance, which exceeded our top and bottom line expectations. Revenue grew 33% and total ARR grew 32% year-over-year. Net new ARR increased 16% sequentially, driven by stronger new business generation. Our pace and progress towards profitability remains best in class, we delivered a record-high gross margin of 80% with our operating margin nearing break even. Q2 also marked a record operating margin once again improving by double digit percentage points year-over-year. And we achieved positive net income and earnings per share for the first time in company's history, which is a significant milestone. Demand in Q2 was broad-based. We're securing an increasing number of businesses of all sizes and geographies from the largest global enterprises who smaller businesses to our partnerships with MSSPs.

Singularity: As always, please read our shareholder letter published on the Investor Relations website, which provides more detail.

And with that, let me turn the call over to Toma Weingarten, CEO of Sentinel One.

Speaker Change: Let's review the details of our second quarter performance, which exceeded our talk and bottom line expectations.

Tomer Weingarten: Good afternoon, everyone, and thank you for joining our fiscal second quarter earnings call. We reported strong results and exceeded our expectations on all key metrics, including ARR revenue, gross margin, and operating margin. Our teams executed well during the quarter, we maintain our industry-leading revenue growth and set new company records for gross, operating, and net income margin. Importantly, we achieved a significant profitability milestone, our first-ever quarter of positive net income and earnings per share, this is a tremendous achievement and I would like to congratulate all Sentinel's who made this possible. In addition, our Q2 net new ARR performed our expectation by a double-digit percentage, and we continue to expect new business growth trends to improve in the second half of the year.

Speaker Change: Revenue Group 33% and totally RR Group 32% year over year. Net new ARR increased 16% sequentially driven by stronger new business generation.

Speaker Change: Our pace and progress towards profitability remains a bit in class.

Speaker Change: We delivered a record high gross margin of 80% with our operating margin, nearing great given.

Speaker Change: Due to also marked a record operating margin, once again, including by double-digit percentage points year over year, and we achieved positive net income and earnings per share for the first time in the company's history, which is a significant milestone.

Tomer Weingarten: In addition, our Q2 net new ARR performed our expectation by a double-digit percentage, and we continue to expect new business growth trends to improve in the second half of the year. Based on our business and go-to-market momentum, we're also raising our revenue guidance for fiscal year '25. Superior technology is the cornerstone of how we empower our partners and customers to build more resilient enterprises, SentinelOne leads the industry with best-in-class AI-powered security and customer transparency, these are our guiding principles. Mission critical businesses around the world rely on our technology, platform architecture, and engineering best practices. As I mentioned in a prior earnings call, bigger brands do not mean better security.

Speaker Change: The man in Q2 was brought based, we're securing an increasing number of businesses on all sizes and geographies from the largest global enterprises who smaller businesses to our partnerships with MSSPs.

Speaker Change: Weed with this in-class technology, transparency, and trust. Customers with more than $100,000 in the ARR, 24% year over year, and customers with more than 1 million dollar in ARR, who even faster, reaching yet another company record.

Speaker Change: The endpoint segment remains a significant growth driver for our business and we continue to win market share.

Tomer Weingarten: And we achieved positive net income and earnings per share for the first time in company's history, which is a significant milestone. Demand in Q2 was broad-based. We're securing an increasing number of businesses of all sizes and geographies from the largest global enterprises who smaller businesses to our partnerships with MSSPs.

Speaker Change: Recording to the IDC Worldwide Modern Endpoint Security Market Shares, 2023 Report, Center One Group at the fastest pace among the top 10 vendors in 2023.

Tomer Weingarten: As I mentioned in a prior earnings call, bigger brands do not mean better security. Substandard platform architectures are extremely risky, and can cause single points of failure, this is evidenced by the string of recent breaches at Microsoft and the largest IT outage in history caused by our direct competitor, CrowdStrike. The dependency on fragile software can rapidly disrupt our way of life, because billions in damages to the businesses they're supposed to protect. Self-proclaimed industry leadership and over-zealous marketing can create a false perception of reliability, eventually, the end user suffers, which is why we must focus on facts, not fiction. Operational hygiene and process controls are essential for any reliable software, anything short of that is a breach of customer trust.

Speaker Change: We expect this momentum to continue, especially as we experience strategic partnerships to bring Sentinel-1 to more businesses and endpoints than ever before.

Speaker Change: In addition, our emerging solutions like data, purple AI and cloud continue to outpace the overall company growth rates in Q2. For instance, purple AI is moving to be truly transformative and we're seeing great customer attraction.

Tomer Weingarten: [inaudible] Weed,[inaudible] Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion. Large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance.

Speaker Change: We did only months after general availability, purple AI adoption has surpassed all our expectations and contributed to Q2 our performance.

Speaker Change: For instance, we achieved double digit attach rate for popular AI across all eligible endpoints sold in the second quarter indicating incredible momentum.

Tomer Weingarten: Operational hygiene and process controls are essential for any reliable software, anything short of that is a breach of customer trust. Another big takeaway from recent events is this, architecture matters. SentinelOne's platform and patented behavioral AI security approach do not require constant anti-virus-like updates, detection delays, or configuration changes to secure enterprises, period. Singularity is purpose-built to deliver top-tier autonomous security, without requiring extensive integration into the kernel, the most sensitive part of an operating system, where even minor errors can cause significant disruption. To be clear, the combination of deployment process is fully controllable by the customer, and advanced behavioral AI architecture significantly improves security and operational resilience. I'll elaborate on this later.

Speaker Change: The Indiswees must advance generative AI security solution, properly I unify, accelerate, and simplify security operations.

Speaker Change: Customers are seeing real gains in productivity with 80% faster threat hunting and investigations.

Speaker Change: We propose the generative AI capabilities and the prizes are enjoying blazing fast performance, machine speed protection in better security outcomes.

Speaker Change: It's only going to get better from here. Integrating AI into all aspects of security and data operations is a transformative step for the industry and central one is once again at the forefront.

Speaker Change: Growth of our emerging solutions and success with large enterprises continues to drive higher ARR customer, which increased by double digits per cent year over year to a record high in the second quarter. Platform expansion rates remain healthy and consistent with recent trends.

Tomer Weingarten: Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors to a rigorous POC evaluation singularity platform was selected because of its multi-tenancy road operating system coverage and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: Our strategy is to drive a higher portion of our business mix through new customer growth and it's working well. Long term, this will open doors for significant future expansion opportunities.

Speaker Change: On the competitive front, our platform differentiation and market position are stronger than ever. We continue to win a significant majority of competitive evaluations against both next gen and legacy vendors, because endpoint data and cloud.

Speaker Change: Our AI Power Protection, Unified Data Lake in Platform Architecture, can deliver better security, simplicity, and savings for the end of the crisis.

Speaker Change: The most many exciting customer wins in the quarter, let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions. Our data and stem solutions remain a source of outside growth for our company.

Tomer Weingarten: Unfortunately, every system secured by this other vendor got breached while systems secured by SentinelOne remained protected. The difference was clear in the customer fully deployed SentinelOne with a multimillion dollar expansion. Our AI-powered singularity platform is feeling new customer wins and significant extensions. We remained in the early stages of market share gains and expansion of our platform footprint equals multiple large end markets.

Tomer Weingarten: Demand in Q2 was broad-based. We're securing an increasing number of businesses of all sizes and geographies, from the largest global enterprises, to smaller businesses, to our partnerships with MSSPs. We lead with best-in-class technology, transparency and trust, customers with over $100,000 dollars in ARR grew 24% year over year, and customers with more than one million dollars in ARR grew even faster, reaching yet another company record. The endpoint segment remained a significant growth-driver for our business, and we continue to win market share, according to the IDC world-wide modern endpoint security marketshare 2023 report, SentinelOne grew at it's fastest pace among the top 10 vendors in 2023, we expect this momentum to continue, especially as we advance strategic partnerships to bring SentinelOne to more businesses and end points than ever before. In addition. our emerging solutions like data, purple AI and cloud, continue to out-phase the overall company growth rate in Q2. For instance Purple AI is [inaudible] to be fully transformative, and we're seeing great customer traction. Within only months after general availability Purple AI adoption has surpasses all of our expectations and contributed to Q2 out performance. For instance, we achieved double digit attach rates for purple AI across all eligible end points sold in the second quarter, indicating incredible momentum. As the [inaudible] most advanced generative AI security solutions, purple AI unifies, accelerates and simplifies security operations. Customers are seeing real gains in productivity with 80% faster treat hunting and investigation. With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: In one example, a global aerospace company, extended from endpoint security to an AI-SM coverage, identity, purple AI, and began adopting our new scene absolute shit.

Speaker Change: Once again, the technological and cost superiority of the singularity platform was clear. The center prize is now ingesting twice the data in still saving money compared to the incumbent legacy Samsung.

Speaker Change: Second, Cloud Remains, a strong driver of New Customer Growth and Extension. Large enterprises routinely expend their cloud security footprint for enhanced coverage and visibility with central one.

Tomer Weingarten: The endpoint segment remained a significant growth-driver for our business, and we continue to win market share, according to the IDC world-wide modern endpoint security marketshare 2023 report, SentinelOne grew at it's fastest pace among the top 10 vendors in 2023, we expect this momentum to continue, especially as we advance strategic partnerships to bring SentinelOne to more businesses and end points than ever before. In addition. our emerging solutions like data, purple AI and cloud, continue to out-phase the overall company growth rate in Q2. For instance Purple AI is [inaudible] to be fully transformative, and we're seeing great customer traction. Within only months after general availability Purple AI adoption has surpasses all of our expectations and contributed to Q2 out performance. For instance, we achieved double digit attach rates for purple AI across all eligible end points sold in the second quarter, indicating incredible momentum. As the [inaudible] most advanced generative AI security solutions, purple AI unifies, accelerates and simplifies security operations. Customers are seeing real gains in productivity with 80% faster treat hunting and investigation. With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Tomer Weingarten: From a macroeconomic perspective, little has changed in recent months. Our Q2 performance showcases strong execution and significant progress on the go-to-market initiatives outlined last quarter. We've brought in proven leaders for optimizing our processes and expanding our market presence. This is a constant evolution and we're on the right track. Our progress on these initiatives is yielding positive results which is evidenced by stronger new business generation, competitive win rates and growth outlook.

Tomer Weingarten: According to the IDC world-wide modern endpoint security marketshare 2023 report, SentinelOne grew at it's fastest pace among the top 10 vendors in 2023, we expect this momentum to continue, especially as we advance strategic partnerships to bring SentinelOne to more businesses and end points than ever before. In addition. our emerging solutions like data, purple AI and cloud, continue to out-phase the overall company growth rate in Q2. For instance Purple AI is [inaudible] to be fully transformative, and we're seeing great customer traction. Within only months after general availability Purple AI adoption has surpasses all of our expectations and contributed to Q2 out performance. For instance, we achieved double digit attach rates for purple AI across all eligible end points sold in the second quarter, indicating incredible momentum. As the [inaudible] most advanced generative AI security solutions, purple AI unifies, accelerates and simplifies security operations. Customers are seeing real gains in productivity with 80% faster treat hunting and investigation. With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: We guard us of the end-point in competency, and to present continued to select our AI Power Cloud security offerings for better security and operational performance.

Speaker Change: Third, legacy displacements and breach activity are driving strong demand for endpoint solutions.

Speaker Change: At one global financial institution, we replaced a patchwork of four different next-gen and legacy and point vendors. To a rigorous POC evaluation, singularity platform was selected because of its multi-tenancy, role-of-rating system coverage in leading AI-based security.

Tomer Weingarten: In addition. our emerging solutions like data, purple AI and cloud, continue to out-phase the overall company growth rate in Q2. For instance Purple AI is [inaudible] to be fully transformative, and we're seeing great customer traction. Within only months after general availability Purple AI adoption has surpasses all of our expectations and contributed to Q2 out performance. For instance, we achieved double digit attach rates for purple AI across all eligible end points sold in the second quarter, indicating incredible momentum. As the [inaudible] most advanced generative AI security solutions, purple AI unifies, accelerates and simplifies security operations. Customers are seeing real gains in productivity with 80% faster treat hunting and investigation. With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Tomer Weingarten: Within only months after general availability Purple AI adoption has surpasses all of our expectations and contributed to Q2 out performance. For instance, we achieved double digit attach rates for purple AI across all eligible end points sold in the second quarter, indicating incredible momentum. As the [inaudible] most advanced generative AI security solutions, purple AI unifies, accelerates and simplifies security operations. Customers are seeing real gains in productivity with 80% faster treat hunting and investigation. With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: Finally, at one of the largest hospitals in the United States, Central One in another endpoint vendor had been deployed in select geographies. Unfortunately, every system secured by this other vendor got breached while systems secured by Central One remained protected.

Tomer Weingarten: For instance, we achieved double digit attach rates for purple AI across all eligible end points sold in the second quarter, indicating incredible momentum. As the [inaudible] most advanced generative AI security solutions, purple AI unifies, accelerates and simplifies security operations. Customers are seeing real gains in productivity with 80% faster treat hunting and investigation. With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: The difference was clear in the customer fully deployed sensor 1 with a multimillion dollar expansion.

Speaker Change: Our AI power singularity platform is feeling new customer wins in significant extensions.

Speaker Change: We remained in the early stages of marketer gain and expansion of our platform footprint and it was multiple large end markets.

Tomer Weingarten: With Purple's Generative AI capabilities, enterprises are enjoying blazing fast performance, machine speed protection, and a better security outcome, and it's only going to get better from here. Integrating AI into all aspects of security and data operations, is a transformative step for the industry, and SentinelOne is, once again [inaudible]. Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: From a macroeconomic perspective, little has changed in recent months. Our Q2 performance showcases strong execution and significant progress on the go-to-market initiatives outlined last quarter.

Speaker Change: We've brought in proven leaders for optimizing our processes and expanding our market presence.

Tomer Weingarten: This allows Google to help migrate their customers from incumbent protection solutions and also make SentinelOne a part of the choice to cause a majority of the incidence response providers, including Aeon, Booz Allen, KPMG and others. Our collaboration with Google brings together SentinelOne's leading AI power to autonomous security and Google Cloud's extensive threat intelligence, creating the most comprehensive telemetry data for security insights. For the cyber insurance industry, we launched the SentinelOne Risk Assurance Initiative in partnership with an extensive network of leading cyber insurers, including CHOP, Coalition, CFC and more.

Tomer Weingarten: Growth of our emerging solution and success with large enterprises continues to drive high ARR per customer, which increased by double digit percent, year over year, to a record high in the second quarter. Platform expansion rates remain heathy and consistent with recent trends. Our strategy is to drive a higher portion of our business mix to new customer growth, and it's working well, long term this will open doors for significant future expansion opportunities. On the competitive front, our platform appreciation and market position are stronger than ever, we continue to win a significant majority of competitive evaluation against both Next Gen and legacy vendors across endpoint data and could. Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: This is a constant evolution and we're on the right track. Our progress of these initiatives is yielding positive results, which is evidenced by stronger new business generation, competitive win rates and growth outlook.

Speaker Change: We've entered a new dawn, a stronger central one in a more complex cyber landscape. In Q2, we made significant strides to elevate our market presence and create new strategic routes to market.

Speaker Change: Let me share a few themes that showcase the expanding scaling scope of Sentinel-1 across the cyber ecosystem through strategic partnerships, for instance.

Speaker Change: In the International Response segment, we expanded our partnership with Google.

Speaker Change: Becoming a strategic endpoint vendor for Mandy and Consulting. This allows Google to help migrate their customers from incumbent protection solutions and also make sense on one that part of the choice across the majority of the

Tomer Weingarten: Our AI-powered protection, unified data lake and platform architecture can deliver better security, simplicity and savings for the enterprises. Among many exiting customer wins in the quarter let me highlight a few illustrative examples. First, a growing number of customers are choosing a wider range of singularity platform solutions, our data and [inaudible] remain a source of outsized growth for our company. In one example, a globular space company, expanded from endpoint security to it's AI sim coverage, identity, purple AI, and begin adopting our new [inaudible] solutions. Once again, the technological and core superiority of the singularity platform was clear. The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Tomer Weingarten: We're helping millions of SMB seamlessly up-level security at preferred rates while extending the region scale of SentinelOne. In the Federal Arena, we recently launched a partnership with CISA to deliver government-wide cyber defense. This part of CISA's persistent access capability initiative, the singular key platform and data lake will provide AI powered autonomous threat detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information. Finally, we continue to strengthen our position across the MSP ecosystem as we help new and existing partners to build managed security practices. With multi-tenancy automation capabilities and role-based access control, SentinelOne remains the partner of choice for MSP's.

Speaker Change: Park Collaboration with Google, brings together a simple one's leading AI power to autonomous security and Google Cloud's extensive threat intelligence, creating the most comprehensive telemetry data for security insights.

Speaker Change: For the Cyber Insurance Industry, we launched the Central One Risk Assurance Initiative.

Speaker Change: Ship with an extensive network of leading sub-renuers, including job coalition, CFC, and more. We're helping millions of SMB seamlessly up-level security at preferred rates while extending the reach of scale of Sentinel-1.

Tomer Weingarten: The center prize is now ingesting twice the data, and still saving money compared to the incumbent legacy sense solution. Second, cloud remains a strong driver of new customer growth and expansion, large enterprises routinely expand their cloud security footprint for enhanced coverage and invisibility with SentinelOne. Regardless of the end point and currency, enterprises continue to select our AI-powered cloud security offerings for better security and operational performance. Third, legacy displacements and breach activity are driving strong demand for our end point solutions. At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies.

Speaker Change: In the Federal Arena, we recently launched a partnership with Sessa to deliver government-wide cyber defense.

Speaker Change: This part of CISS has persistent access capability initiative, the singular key platform and data lake will provide AI powered autonomous radio detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information.

Speaker Change: Finally, we continue to strengthen our position across the MSSP ecosystem as we help new and existing partners build managed security practices.

Tomer Weingarten: All of this is just the beginning of a new growth chapter for us. I've never been more excited about our platform differentiation and go-to-market momentum. We're positioning SentinelOne for long-term success in a $100 billion-plus security and data market opportunity. The leading indicators are positive.

Tomer Weingarten: At one global financial institution, we replaced a patchwork of four different next-gen and legacy end point vendors, to a rigorous POC evaluation, singularity platform was selected because of it's multi-tenancy, road operating system coverage, and leading AI-based security. Finally, at one of the largest hospitals in the United States, SentinelOne and another end point vendor had been deployed in select geographies. Unfortunately, every system secured by this other vendor got breached while systems secured by SentinelOne remained protected. The difference was clear in the customer fully deployed SentinelOne with a multimillion dollar expansion. Our AI-powered singularity platform is feeling new customer wins and significant extensions. We remained in the early stages of market share gains and expansion of our platform footprint, equals multiple, large end markets.

Speaker Change: We'd more detail in the information capabilities and role-based access control, simple one remains the partner of choice for MSSPs.

Speaker Change: For all of this is just the beginning of a new group chapter for us.

Speaker Change: I've never been more excited about our platform differentiation and go to market momentum.

Speaker Change: We're positioning Central 1 for long-term success in a hundred billion dollar plus security and data market opportunity. Deleting indicators are positive, having achieved profitability or paving the way for durable growth and substantial market share gains.

Tomer Weingarten: Having achieved profitability, we're paving the way for durable growth and substantial market share gains.

Tomer Weingarten: Let's turn to the broader cybersecurity landscape. This is an unprecedented time for our industry. The frequency, complexity, and cost of cyber attacks are reaching new odds. At the same time, the performance shortcomings of other market offerings are becoming visible to the public. In just the last few months, we've seen high-profile breaches and security failures from the top two endpoint vendors by market share. These incidents are extremely disruptive for the millions of people and thousands of businesses who expect reliability from their security providers.

Speaker Change: Let's throw into the broader cybersecurity landscape.

Speaker Change: This is an unprecedented time for our industry. The frequency, complexity and cost of cyber-attacks are reaching new highs.

Tomer Weingarten: Our AI-powered singularity platform is feeling new customer wins and significant extensions. We remained in the early stages of market share gains and expansion of our platform footprint, equals multiple, large end markets. From a macroeconomic perspective, little has changed in recent months. Our Q2 performance showcases strong execution and significant progress on the go-to-market initiatives outlined last quarter. We've brought in proven leaders for optimizing our processes and expanding our market presence. This is a constant evolution and we're on the right track. Our progress on these initiatives is yielding positive results which is evidenced by stronger new business generation, competitive win rates and growth outlook. We've entered a new dawn, a stronger SentinelOne in a more complex cyber landscape. In Q2, we made significant strides to elevate our market presence and create new strategic routes to market. Let me share a few themes that showcase the expanding scale and scope of SentinelOne across the cyber ecosystem to strategic partnerships. For instance, in the incidence response segment, we expanded our partnership with Google, becoming a strategic endpoint vendor for mandy and consulting.

Speaker Change: At the same time, the performance shortcomings of other market offerings are becoming visible to the public. In just the last few months, we've seen high profile breaches and security failures from the top two end-point vendors by market share.

Speaker Change: These incidents are extremely disruptive for the millions of people and thousands of businesses who expect reliability from their security providers.

Tomer Weingarten: Self-proclaimed gold standards in market share leadership do not equate to better security or customer experience. The latest global IT outage highlights the significance of platform architectures. The cost of protection should never exceed the consequences of a breach. The scale and disruption caused by this incident is a stark reminder of the risks posed by vendor concentration. This was an avoidable incident that was born out of disregard for software deployment practices.

Speaker Change: Self-proclaimed gold standard in the market share leadership do not equate to better security or customer experience.

Tomer Weingarten: Our progress on these initiatives is yielding positive results which is evidenced by stronger new business generation, competitive win rates and growth outlook. We've entered a new dawn, a stronger SentinelOne in a more complex cyber landscape. In Q2, we made significant strides to elevate our market presence and create new strategic routes to market. Let me share a few themes that showcase the expanding scale and scope of SentinelOne across the cyber ecosystem to strategic partnerships. For instance, in the incidence response segment, we expanded our partnership with Google, becoming a strategic endpoint vendor for mandy and consulting.

Tomer Weingarten: Our progress on these initiatives is yielding positive results which is evidenced by stronger new business generation, competitive win rates and growth outlook.

Speaker Change: The latest global IT outage highlights the significance of platform architectures.

Speaker Change: The cost of protection should never exceed the consequences of a breach. The scale and disruption caused by this incident is a stark reminder of the risks posed by vendor concentration.

Tomer Weingarten: We've entered a new dawn, a stronger SentinelOne in a more complex cyber landscape. In Q2, we made significant strides to elevate our market presence and create new strategic routes to market. Let me share a few themes that showcase the expanding scale and scope of SentinelOne across the cyber ecosystem through strategic partnerships. For instance, in the incidence response segment, we expanded our partnership with Google, becoming a strategic endpoint vendor for Mandiant Consulting. This allows Google to help migrate their customers from incumbent protection solutions, and also make SentinelOne a part of the choice to cause a majority of the incidence response providers, including Aeon, Booz Allen, KPMG and others. Our collaboration with Google, brings together SentinelOne's leading AI power to autonomous security, and Google Cloud's extensive threat intelligence, creating the most comprehensive telemetry data for security insights. For the cyber insurance industry, we launched the SentinelOne Risk Assurance Initiative, in partnership with an extensive network of leading cyber insurers, including CHOP, Coalition, CFC and more. We're helping millions of SMB seamlessly up-level security at preferred rates, while extending the region scale of SentinelOne. In the Federal Arena, we recently launched a partnership with CISA to deliver government-wide cyber defense, this part of CISA's persistent access capability initiative. The singular key platform and data lake will provide AI powered autonomous threat detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information. Finally, we continue to strengthen our position across the MSP ecosystem as we help new and existing partners to build managed security practices. With multi-tenancy automation capabilities and role-based access control, SentinelOne remains the partner of choice for MSP's. All of this is just the beginning of a new growth chapter for us. I've never been more excited about our platform differentiation and go-to-market momentum. We're positioning SentinelOne for long-term success in a $100 billion+ security and data market opportunity. The leading indicators are positive.

Speaker Change: This was an avoidable incident that was born out of these regard for software-depforming This failure will not be quickly dismissed.

Tomer Weingarten: This failure will not be quickly dismissed. As I said last quarter, putting all eggs in the same basket is not advisable in security. Following this incident, customers and partners are looking to reduce their reliance on vendors that enforce closed garden platforms. It sends on one, we take an open ecosystem approach to security to give enterprises flexibility and choice. Our goal is not to force cell modules. It is to provide optionality and access to best-of-breed capabilities that minimize security risk and maximize resilience. At Blackhead a few weeks ago, we heard from enterprises that they want to diversify cybersecurity technologies and mitigate the risk of another global outage. There was a lot of excitement and interest in central one.

Speaker Change: As I said last quarter, putting all eggs in the same basket is not advisable in security. Following this incident, customers and partners are looking to reduce their reliance on vendors that enforce closed garden platforms.

Tomer Weingarten: This allows Google to help migrate their customers from incumbent protection solutions, and also make SentinelOne a part of the choice to cause a majority of the incidence response providers, including Aeon, Booz Allen, KPMG and others. Our collaboration with Google, brings together SentinelOne's leading AI power to autonomous security, and Google Cloud's extensive threat intelligence, creating the most comprehensive telemetry data for security insights. For the cyber insurance industry, we launched the SentinelOne Risk Assurance Initiative, in partnership with an extensive network of leading cyber insurers, including CHOP, Coalition, CFC and more. We're helping millions of SMB seamlessly up-level security at preferred rates, while extending the region scale of SentinelOne. In the Federal Arena, we recently launched a partnership with CISA to deliver government-wide cyber defense, this part of CISA's persistent access capability initiative. The singular key platform and data lake will provide AI powered autonomous threat detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information. Finally, we continue to strengthen our position across the MSP ecosystem as we help new and existing partners to build managed security practices. With multi-tenancy automation capabilities and role-based access control, SentinelOne remains the partner of choice for MSP's. All of this is just the beginning of a new growth chapter for us. I've never been more excited about our platform differentiation and go-to-market momentum. We're positioning SentinelOne for long-term success in a $100 billion+ security and data market opportunity. The leading indicators are positive.

Central One: At Central One, we take an open ecosystem approach to security, to give enterprises flexibility in choice.

Central One: Our goal is not to force cell modules, it is to provide optionality and access to best of recapitabilities that minimize security risk and maximize resilience.

Tomer Weingarten: Our collaboration with Google, brings together SentinelOne's leading AI power to autonomous security, and Google Cloud's extensive threat intelligence, creating the most comprehensive telemetry data for security insights. For the cyber insurance industry, we launched the SentinelOne Risk Assurance Initiative, in partnership with an extensive network of leading cyber insurers, including CHOP, Coalition, CFC and more. We're helping millions of SMB seamlessly up-level security at preferred rates, while extending the region scale of SentinelOne. In the Federal Arena, we recently launched a partnership with CISA to deliver government-wide cyber defense, this part of CISA's persistent access capability initiative. The singular key platform and data lake will provide AI powered autonomous threat detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information. Finally, we continue to strengthen our position across the MSP ecosystem as we help new and existing partners to build managed security practices. With multi-tenancy automation capabilities and role-based access control, SentinelOne remains the partner of choice for MSP's. All of this is just the beginning of a new growth chapter for us. I've never been more excited about our platform differentiation and go-to-market momentum. We're positioning SentinelOne for long-term success in a $100 billion+ security and data market opportunity. The leading indicators are positive.

Speaker Change: At Blackhead a few weeks ago, we heard from Interprises that they wanted to diversify cybersecurity technologies and mitigate the risk of another global outage. There was a lot of excitement and interest in Central One.

Tomer Weingarten: Companies do not make snap decisions, they need to figure out how to make the transition, but this shift is positive for central one in the broader enterprise security landscape. This will play out for years, as companies dig through the web of liabilities and risks uncovered by this historic outage, as enterprises look to mitigate risk, we help them boost resilience in their security portion. In this cybersecurity industry, we share a fundamental goal to deliver protection and reliability, security vendors must prioritize security, over-profits, facts, over-fiction, and innovation over-marketing. Beyond this, the biggest lesson our industry has learned is the importance of product architecture. Understandably, customers and partners are now looking for better platform architectures and building more resilient cyber defenses, this is resulting in significant pipeline pick-up for us in high levels of customer interest. This is coming from some of the largest enterprises and partners in the world that did not have a chance to appreciate singularity platforms, breadth, and superiority relative to the competitive offerings, all of that is changing now, and they are impressed by what we can offer. For instance, several of the world's biggest companies are now engaging with SentinelOne, and some of them have already made the decision to switch, this is just a start. SentinelOne purpose-built an agent that can simultaneously run dual AI-based detection engines, both cloud natively, and on device. We patented behavioral AI for real-time protection on the device, complemented by comprehensive context and triage in the cloud. Solid cyber security requires both, redundancy, in this context is mission critical, not constant software updates. Most importantly, our platform architecture and behavioral AI-based detection capabilities are patented and unique, when we say autonomous, these are not marketing claims, but a description of how our product works. The difference is clear when you consider MITRE ATT&CK evaluations for endpoint over the past several years, let me highlight just one specific element of MITRE ATT&CK evaluations that is often overlooked. Every year, multiple vendors claim 100% detection, with more than one claiming they had the best results. This can't be true, and it's not, two important matrix everyone should look at are the number of delays and configuration changes during the MITRE evaluation. Making dozens of configuration changes during an attack evaluation, simply means that the vendor had to modify it's product for detection and protection, otherwise it failed. This is obviously unrealistic in real-world and real-time scenarios, especially when coupled with Brittle Kernel-level updates.

Speaker Change: Company do not make snap decisions, and need to figure out how to make the transition, but this shift is positive for central one and the broader enterprise security landscape.

Tomer Weingarten: We're helping millions of SMB seamlessly up-level security at preferred rates, while extending the region scale of SentinelOne. In the Federal Arena, we recently launched a partnership with CISA to deliver government-wide cyber defense, this part of CISA's persistent access capability initiative. The singular key platform and data lake will provide AI powered autonomous threat detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information. Finally, we continue to strengthen our position across the MSP ecosystem as we help new and existing partners to build managed security practices. With multi-tenancy automation capabilities and role-based access control, SentinelOne remains the partner of choice for MSP's. All of this is just the beginning of a new growth chapter for us. I've never been more excited about our platform differentiation and go-to-market momentum. We're positioning SentinelOne for long-term success in a $100 billion+ security and data market opportunity. The leading indicators are positive.

Speaker Change: This will play out for years as companies dig through the web of liabilities and risks uncovered by this historic As enterprises look to mitigate risk, we help them boost resilience in their security posture.

Tomer Weingarten: In this cybersecurity industry, we share a fundamental goal to deliver protection and reliability. Security vendors must prioritize security, over-profits, facts, over-fiction, and innovation over-marketing.

Tomer Weingarten: The singular key platform and data lake will provide AI powered autonomous threat detection and response across federal IT assets, helping to safeguard our nation's most critical and sensitive information. Finally, we continue to strengthen our position across the MSP ecosystem as we help new and existing partners to build managed security practices. With multi-tenancy automation capabilities and role-based access control, SentinelOne remains the partner of choice for MSP's. All of this is just the beginning of a new growth chapter for us. I've never been more excited about our platform differentiation and go-to-market momentum. We're positioning SentinelOne for long-term success in a $100 billion+ security and data market opportunity. The leading indicators are positive.

Speaker Change: In this cybersecurity industry we share a fundamental goal to deliver protection and reliability.

Speaker Change: Security vendors must prioritize security over profits, facts, over fiction, and innovation over marketing.

Speaker Change: Beyond this, the biggest lesson our industry has learned is the importance of product architecture. Understandably, customers and partners are now looking for better platform architectures in building more resilient fabric defenses.

Speaker Change: This is resulting in significant pipeline pick-up for us in high levels of customer interest.

Speaker Change: This is coming from some of the largest enterprises and partners in the world that did not have a chance to appreciate singularity, platforms, breadth and superiority relative to the competitive offerings. All of that is changing now.

Tomer Weingarten: We're positioning SentinelOne for long-term success in a $100 billion+ security and data market opportunity. The leading indicators are positive, having achieved profitability, we're paving the way for durable growth and substantial market share gains. Let's turn to the broader cybersecurity landscape, this is an unprecedented time for our industry, the frequency, complexity, and cost of cyber attacks are reaching new odds. At the same time, the performance shortcomings of other market offerings are becoming visible to the public. In just the last few months, we've seen high-profile breaches and security failures from the top two endpoint vendors by market share. These incidents are extremely disruptive for the millions of people and thousands of businesses who expect reliability from their security providers. Self-proclaimed gold standards in market share leadership do not equate to better security or customer experience. The latest global IT outage highlights the significance of platform architectures, the cost of protection should never exceed the consequences of a breach. The scale and disruption caused by this incident is a stark reminder of the risks posed by vendor concentration, this was an avoidable incident that was born out of disregard for software deployment practices. This failure will not be quickly dismissed. As I said last quarter, putting all eggs in the same basket is not advisable in security, following this incident, customers and partners are looking to reduce their reliance on vendors that enforce closed garden platforms. In SentinelOne, we take an open ecosystem approach to security, to give enterprises flexibility and choice. Our goal is not to force cell modules, it is to provide optionality and access to best-of-breed capabilities that minimize security risk and maximize resilience. At Blackhead a few weeks ago, we heard from enterprises that they want to diversify cybersecurity technologies and mitigate the risk of another global outage, there was a lot of excitement and interest in central one.

Tomer Weingarten: For instance, several of the world's biggest companies are now engaging with SentinelOne, and some of them have already made the decision to switch. This is just a start. SentinelOne purpose-built an agent that can simultaneously run dual AI-based detection engines both cloud natively and on device. We patented behavioral AI for real-time protection on the device complemented by comprehensive context and triage in the cloud. Solid cyber security requires both.

Speaker Change: In their impressed by what we can offer. For instance, several of the world's biggest companies are now engaging with Central One in some of them have already made the decision to switch.

Speaker Change: This is just a start.

Speaker Change: 2.1 purpose built in agents that can simultaneously run dual AI-based detection engines, both cloud natively and on device. We patented behavioral AI for real-time protection on the device, complemented by comprehensive context and try as in the cloud.

Tomer Weingarten: With redundancy, in this context is mission critical, not constant software updates. Most importantly, our platform architecture and behavioral AI-based detection capabilities are patented in unique. When we say autonomous, these are not marketing claims, but a description of how our product works.

Tomer Weingarten: These incidents are extremely disruptive for the millions of people and thousands of businesses who expect reliability from their security providers. Self-proclaimed gold standards in market share leadership do not equate to better security or customer experience. The latest global IT outage highlights the significance of platform architectures, the cost of protection should never exceed the consequences of a breach. The scale and disruption caused by this incident is a stark reminder of the risks posed by vendor concentration, this was an avoidable incident that was born out of disregard for software deployment practices. This failure will not be quickly dismissed. As I said last quarter, putting all eggs in the same basket is not advisable in security, following this incident, customers and partners are looking to reduce their reliance on vendors that enforce closed garden platforms. In SentinelOne, we take an open ecosystem approach to security, to give enterprises flexibility and choice. Our goal is not to force cell modules, it is to provide optionality and access to best-of-breed capabilities that minimize security risk and maximize resilience. At Blackhead a few weeks ago, we heard from enterprises that they want to diversify cybersecurity technologies and mitigate the risk of another global outage, there was a lot of excitement and interest in central one.

Speaker Change: Solid Cybersecurity requires both redundancy in this context is mission critical, not constant software updates.

Speaker Change: Most importantly, our platform architecture and Beaverly Eye based detection capabilities are patented in ink. When we say autonomous, these are not marketing claims, but a description of how our product works.

Tomer Weingarten: The difference is clear when you consider miter-attack evaluations for endpoint over the past several years. Let me highlight just one specific element of miter-attack evaluations that is often overlooked. Every year, multiple vendors claim 100% detection, with more than one claiming they had the best results. This can't be true, and it's not. Two important matrix everyone should look at are the number of delays and configuration changes during the miter evaluation. Making dozens of configuration changes during an attack evaluation simply means that the vendor had to modify its product for detection and protection, otherwise it failed. This is obviously unrealistic in real-world and real-time scenarios, especially when coupled with brittle kernel-level updates.

Speaker Change: The difference is clear when you consider tighter attack evaluations for endpoint over the past several years. Let me highlight just one specific element of tighter attack evaluation that is often overlooked.

Speaker Change: Every year, multiple vendors claim 100% detection, with more than one claiming they had the best results.

Speaker Change: This can't be true and it's not. Two important matrix everyone should look at are the number of delays and configuration changes during the evaluation.

Tomer Weingarten: As I said last quarter, putting all eggs in the same basket is not advisable in security, following this incident, customers and partners are looking to reduce their reliance on vendors that enforce closed garden platforms. In SentinelOne, we take an open ecosystem approach to security, to give enterprises flexibility and choice. Our goal is not to force cell modules, it is to provide optionality and access to best-of-breed capabilities that minimize security risk and maximize resilience. At Blackhead a few weeks ago, we heard from enterprises that they want to diversify cybersecurity technologies and mitigate the risk of another global outage, there was a lot of excitement and interest in central one.

Speaker Change: Making dozens of configuration changes during an attack evaluation, simply means that the vendor had to modify its product for detection and protection, otherwise it failed.

Speaker Change: This is obviously unrealistic in real world in real time scenarios, especially when coupled with brittle, kernel-level updates.

Tomer Weingarten: In our Q3 shareholder letter from fiscal year 24, you can see the miter-evaluation's chart showing overuse of configuration changes and delays. The two largest endpoint vendors by market share combined had more than 50 delays and configuration changes. Sentinel-1 had zero. In our view, customers and partners deserve transparency from the first conversation to multi-relationships to build trust in a secure future.

Speaker Change: In our Q3 shareholder letter from fiscal year 24, you can see the mitrevaluations chart showing over use of configuration changes in delays.

Speaker Change: The two largest end-point vendors by market share combined a more than 50 delays and configuration changes. Set in one head zero.

Speaker Change: In our view, customers and partners deserve transparency from the first conversation to multi-relationships to build trust and secure future. This should be the industry standard.

Tomer Weingarten: This should be the industry standard. We lead with better technology instead of aggressive marketing claims. As a result, we win a significant majority of technical evaluation.

Speaker Change: We lead with better technology instead of aggressive marketing claims, as a result, we win a significant majority of technical evaluation.

Tomer Weingarten: We've been a leader in the Gartner Magic Quadrant for endpoint protection platforms for three years in a row. We are ranked among the highest rated vendors in the Gartner peer insight voice of the customer for endpoint protection platforms report, and our singular key platform has ranked number one in Gartner critical capabilities for all of the three use cases for two years in a row. A platform is only as good as the sum of its parts.

Speaker Change: We've been a leader in the Garter Magic Watering for important protection platforms for three years in a row.

Speaker Change: We are ranked among the highest rated vendors in the darker appearance, like the voice of the customer for endpoint protection platforms report. And our singular key platform has ranked number one in Gardner critical capabilities for all of the three use cases for two years in a row.

Tomer Weingarten: Beyond this, the biggest lesson our industry has learned is the importance of product architecture. Understandably, customers and partners are now looking for better platform architectures and building more resilient cyber defenses, this is resulting in significant pipeline pick-up for us in high levels of customer interest. This is coming from some of the largest enterprises and partners in the world that did not have a chance to appreciate singularity platforms, breadth, and superiority relative to the competitive offerings, all of that is changing now, and they are impressed by what we can offer. For instance, several of the world's biggest companies are now engaging with SentinelOne, and some of them have already made the decision to switch, this is just a start. SentinelOne purpose-built an agent that can simultaneously run dual AI-based detection engines, both cloud natively, and on device. We patented behavioral AI for real-time protection on the device, complemented by comprehensive context and triage in the cloud. Solid cyber security requires both, redundancy, in this context is mission critical, not constant software updates. Most importantly, our platform architecture and behavioral AI-based detection capabilities are patented and unique, when we say autonomous, these are not marketing claims, but a description of how our product works. The difference is clear when you consider MITRE ATT&CK evaluations for endpoint over the past several years, let me highlight just one specific element of MITRE ATT&CK evaluations that is often overlooked. Every year, multiple vendors claim 100% detection, with more than one claiming they had the best results. This can't be true, and it's not, two important matrix everyone should look at are the number of delays and configuration changes during the MITRE evaluation. Making dozens of configuration changes during an attack evaluation, simply means that the vendor had to modify it's product for detection and protection, otherwise it failed. This is obviously unrealistic in real-world and real-time scenarios, especially when coupled with Brittle Kernel-level updates.

Tomer Weingarten: And we intend to deliver leading capabilities in all aspects of our platform with an open ecosystem At the center of every SentinelOne solution is the Singularity Data Lake, our fully integrated and unified data platform offers leading AI power protection, simplicity, and savings for customers. Enterprises benefit from a single unified data backend that combines data across all enterprises' critical surfaces, endpoint, cloud, identities, and any third-party source. Every customer, regardless of the size of the contract, gets autonomous protection and visibility.

Speaker Change: A platform is only as good as the sum of its parts, and we intend to deliver leading capabilities in all aspects of our platform with an open ecosystem approach.

Speaker Change: At the center of every centon one solution is the singularity data lake. Our fully integrated and unified data platform over leading AI power protection, simplicity, and savings for customers.

Speaker Change: and the private benefit from a single unified data backend that combines data across all enterprises critical services, endpoint cloud, identities, and any third party source.

Tomer Weingarten: For instance, several of the world's biggest companies are now engaging with SentinelOne, and some of them have already made the decision to switch, this is just a start. SentinelOne purpose-built an agent that can simultaneously run dual AI-based detection engines, both cloud natively, and on device. We patented behavioral AI for real-time protection on the device, complemented by comprehensive context and triage in the cloud. Solid cyber security requires both, redundancy, in this context is mission critical, not constant software updates. Most importantly, our platform architecture and behavioral AI-based detection capabilities are patented and unique, when we say autonomous, these are not marketing claims, but a description of how our product works. The difference is clear when you consider MITRE ATT&CK evaluations for endpoint over the past several years, let me highlight just one specific element of MITRE ATT&CK evaluations that is often overlooked. Every year, multiple vendors claim 100% detection, with more than one claiming they had the best results. This can't be true, and it's not, two important matrix everyone should look at are the number of delays and configuration changes during the MITRE evaluation. Making dozens of configuration changes during an attack evaluation, simply means that the vendor had to modify it's product for detection and protection, otherwise it failed. This is obviously unrealistic in real-world and real-time scenarios, especially when coupled with Brittle Kernel-level updates.

Speaker Change: Every customer, regardless of the size of the contract, gets autonomous protection and visibility.

Tomer Weingarten: We are transforming the legacy sem market with our modern AI sem, scalable, automated, and fully integrated with leading AI capabilities. We're also seeing tremendous customer interest and adoption of our advanced purple AI capabilities. Purple's generative AI capabilities are in major competitive advantage and we have a clear time to market lead. Purple AI is natively integrated across our entire platform. Purple touches every aspect of managing security and has the ability to see and manage all security events, including those of competing products.

Speaker Change: We are transforming the legacy Sam Market with our modern AI Sam, scalable, automated, and fully integrated with leading AI capabilities.

Speaker Change: We're also seeing tremendous customer interest and adoption of our Advanced Purple AI capabilities.

Speaker Change: Groupals, General TV, IKIP abilities are a major competitive advantage and we have a clear time to market lead.

Speaker Change: Purple AI is natively integrated across our entire platform. Purple touches every aspect of managing security and has the ability to see and manage all security events, including those of competing products.

Tomer Weingarten: Most importantly, our platform architecture and behavioral AI-based detection capabilities are patented and unique, when we say autonomous, these are not marketing claims, but a description of how our product works. The difference is clear when you consider MITRE ATT&CK evaluations for endpoint over the past several years, let me highlight just one specific element of MITRE ATT&CK evaluations that is often overlooked. Every year, multiple vendors claim 100% detection, with more than one claiming they had the best results. This can't be true, and it's not, two important matrix everyone should look at are the number of delays and configuration changes during the MITRE evaluation. Making dozens of configuration changes during an attack evaluation, simply means that the vendor had to modify it's product for detection and protection, otherwise it failed. This is obviously unrealistic in real-world and real-time scenarios, especially when coupled with Brittle Kernel-level updates.

Tomer Weingarten: Unlike other market offerings with multiple platforms, co-pilots, and data silos, we're building a unified experience with purple as a security partner for humans. Purple alleviates the challenges of machine speed response, talent shortage, alert fatigue, and enhances analyst productivity all while autonomously securing the enterprise.

Speaker Change: Unlike other market offerings with multiple platforms, co-pilets and data silos, we're building a unified experience with purple is a security partner for humans.

Speaker Change: Purple alleviates the challenges of machine speed response, sound shortage, alert fatigue, and enhances analyst productivity all while autonomously securing the enterprise. The difference is vast.

Tomer Weingarten: The difference is vast. We're constantly pushing the envelope with purple AI. In Q2, we launched alert summaries. These provide AI-generated contextual summaries of alerts so analysts can easily view and understand the details and scope of their alerts across their environment. Finally, we have rapidly expanded our cloud security product offerings, which now provides extensive and highly performant runtime protection and posture management solutions. Our scene app portfolio is the highest rated by G2 summer grid reports. It now includes CSPM available worldwide in CIM, securing identities and entitlements for cloud infrastructure.

Tomer Weingarten: This can't be true, and it's not, two important matrix everyone should look at are the number of delays and configuration changes during the MITRE evaluation. Making dozens of configuration changes during an attack evaluation, simply means that the vendor had to modify it's product for detection and protection, otherwise it failed. This is obviously unrealistic in real-world and real-time scenarios, especially when coupled with Brittle Kernel-level updates. In our Q3 shareholder letter from fiscal year '24, you can see the MITRE evaluation's chart showing overuse of configuration changes and delays. The two largest endpoint vendors by market shares, combined, had more than 50 delays and configuration changes, Sentinel-1 had zero. In our view, customers and partners deserve transparency, from the first conversation, to multi-relationships, to build trust in a secure future, this should be the industry standard. We lead with better technology, instead of aggressive marketing claims, as a result, we win a significant majority of technical evaluation. We've been a leader in the Gartner Magic Quadrant for endpoint protection platforms for three years in a row. We are ranked among the highest rated vendors in the Gartner peer insight voice of the customer for endpoint protection platforms report, and our singular key platform is ranked number one in Gartner critical capabilities for all of the three use cases for two years in a row. A platform is only as good as the sum of it's parts, and we intend to deliver leading capabilities in all aspects of our platform, with an open ecosystem approach. At the center of every SentinelOne solution is the Singularity Data Lake, our fully integrated and unified data platform, offers leading AI power protection, simplicity, and savings for customers. Enterprises benefit from a single unified data backend, that combines data across all enterprises's critical services, endpoint, cloud, identities, and any third-party source. Every customer, regardless of the size of the contract, gets autonomous protection and visibility. We are transforming the legacy SEM market with our modern AI SEM, scalable, automated, and fully integrated with leading AI capabilities. We're also seeing tremendous customer interest and adoption of our advanced purple AI capabilities, Purple's generative AI capabilities are in major competitive advantage, and we have a clear time to market lead. Purple AI is natively integrated across our entire platform, purple touches every aspect of managing security and has the ability to see and manage all security events, including those of competing products.

Speaker Change: We are constantly pushing the envelope with purple AI. In Q2, we launched Alert Summaries. These provide AI-generated contextual summaries of alerts, so analysts can easily view and understand the details in scope of their alerts across their environment.

Speaker Change: Finally, we have rapidly extended our cloud security product offerings, which not provides extensive and highly performance runtime protection and posture management solutions.

Speaker Change: Our CNA portfolio is the highest rated by G2 Summer Grid reports. It now includes CSBM, available worldwide, and CIM, securing identities and entitlements for cloud infrastructures.

Tomer Weingarten: Our pace of innovation and autonomous security approach is sending you into three benchmarks. We're widening the gap in a significant way.

Speaker Change: Our pace of innovation and autonomous security approach is sending you industry benchmarks we're widening the gap in a significant way.

Tomer Weingarten: our view, customers and partners deserve transparency from the first conversation to multi-relationships to build trust in a secure future. This should be the industry standard. We lead with better technology instead of aggressive marketing claims. As a result, we win a significant majority of technical evaluation. We've been a leader in the Gartner Magic Quadrant for endpoint protection platforms for three years in a row. We are ranked among the highest rated vendors in the Gartner peer insight voice of the customer for endpoint protection platforms report, and our singular key platform has ranked number one in Gartner critical capabilities for all of the three use cases for two years in a row. A platform is only as good as the sum of its parts. And we intend to deliver leading capabilities in all aspects of our platform with an open ecosystem At the center of every SentinelOne solution is the Singularity Data Lake, our fully integrated and unified data platform offers leading AI power protection, simplicity, and savings for customers. Enterprises benefit from a single unified data backend that combines data across all enterprises' critical surfaces, endpoint, cloud, identities, and any third-party source. Every customer, regardless of the size of the contract, gets autonomous protection and visibility. We are transforming the legacy sem market with our modern AI sem, scalable, automated, and fully integrated with leading AI capabilities. We're also seeing tremendous customer interest and adoption of our advanced purple AI capabilities. Purple's generative AI capabilities are in major competitive advantage and we have a clear time to market lead. Purple AI is natively integrated across our entire platform. Purple touches every aspect of managing security and has the ability to see and manage all security events, including those of competing products.

Tomer Weingarten: As we look beyond the second quarter, the path forward for central one is bright. Demand indicators are strong, new business growth trends are poised to improve, and we're achieving new profitability milestones.

Speaker Change: As we look beyond the second quarter, the path forward for central one is bright. The demand indicators are strong, new business growth trends are point to improve and we're achieving new profitability milestones.

Tomer Weingarten: The continuation of high profile breaches and the recent global outage once again reinforced that cyber security is not a winner takes all markets. The systemic risks of single vendor concentration are abundantly cleared. After recent events, customer interest in our platform in AI-based security have distinctly risen.

Speaker Change: The continuation of high profile breaches and the recent global outage, once again, we enforce that cyber security is not a winner to take soil markets.

Speaker Change: The systemic risk of single vendor concentration are abundantly cleared. After recent events, customer interest in our platform in AI-based security have distinctly risen.

Tomer Weingarten: This is a new era of cyber security and we are in a leading position. It's certainly early and will play out in months and years to come.

Speaker Change: This is a new era of cyber security, and we are in a leading position. It's certainly early and will play out in months and years to come. As always, our goal remains delivering the best possible security and value to customers and partners.

Tomer Weingarten: As always, our goal remains delivering the best possible security and value to customers and partners. We're focused on keeping customers up and running. This should be a given.

Tomer Weingarten: A platform is only as good as the sum of its parts. And we intend to deliver leading capabilities in all aspects of our platform with an open ecosystem At the center of every SentinelOne solution is the Singularity Data Lake, our fully integrated and unified data platform offers leading AI power protection, simplicity, and savings for customers. Enterprises benefit from a single unified data backend that combines data across all enterprises' critical surfaces, endpoint, cloud, identities, and any third-party source. Every customer, regardless of the size of the contract, gets autonomous protection and visibility. We are transforming the legacy sem market with our modern AI sem, scalable, automated, and fully integrated with leading AI capabilities. We're also seeing tremendous customer interest and adoption of our advanced purple AI capabilities. Purple's generative AI capabilities are in major competitive advantage and we have a clear time to market lead. Purple AI is natively integrated across our entire platform. Purple touches every aspect of managing security and has the ability to see and manage all security events, including those of competing products.

Speaker Change: We're focused on keeping customers up and running. This should be a given.

Tomer Weingarten: Enterprises need reliability, not disrupt. As we look ahead, our teams are exceeding well and our go-to market is getting momentum. We have the winning technology and our competitive position is stronger than ever.

Speaker Change: Enterprises need reliability, not disruption.

Speaker Change: We look ahead, our teams are exceeding well and are go to market is gaining momentum. We have the winning technology and our competitive position is stronger than ever. Our financial performance remains industry leading and we achieved positive net income for the first time.

Speaker Change: This is an incredibly dynamic time for us and the industry, investing in the business from growth in the scale is the right step forward.

Speaker Change: For years, we've led the industry with innovations, and now we're seeing an expanding interest in central ones AI power to become a security.

Tomer Weingarten: In closing, our technology, teams, and financial profile are stronger than ever. I extend my gratitude to our incredible teams. Together, we are paving the path to maximizing our business potential, which importantly, we're focused on helping enterprises advance their infrastructure and security. I want to thank those Sentinel's as well as our valued customers, partners, and shareholders.

Speaker Change: In closing, our technology teams and financial profiles are stronger than ever.

Speaker Change: I extend my gratitude to our incredible team. Together we are paving the path to maximizing our business potential. Most importantly, we're focused on helping enterprises advance their infrastructure and security. I want to thank all of you as well as our valued customers, partners and shareholders.

Tomer Weingarten: We're also seeing tremendous customer interest and adoption of our advanced purple AI capabilities. Purple's generative AI capabilities are in major competitive advantage and we have a clear time to market lead. Purple AI is natively integrated across our entire platform. Purple touches every aspect of managing security and has the ability to see and manage all security events, including those of competing products. Unlike other market offerings with multiple platforms, co-pilots, and data silos, we're building a unified experience with Purple as a security partner for humans. Purple alleviates the challenges of machine speed response, talent shortage, alert fatigue, and enhances analyst productivity, all while autonomously securing the enterprise. The difference is vast, we're constantly pushing the envelope with purple AI. In Q2, we launched alert summaries, these provide AI-generated contextual summaries of alerts, so analysts can easily view and understand the details and scope of their alerts across their environment. Finally, we have rapidly expanded our cloud security product offerings, which now provides extensive and highly performant runtime protection and posture management solutions. Our scene app portfolio is the highest rated by G2 summer grid reports, it now includes CSPM, available worldwide, and CIM, securing identities and entitlements for cloud infrastructure. Our pace of innovation and autonomous security approach is sending you into three benchmarks, we're widening the gap in a significant way. As we look beyond the second quarter, the path forward for central one is bright. Demand indicators are strong, new business growth trends are poised to improve, and we're achieving new profitability milestones. The continuation of high profile breaches and the recent global outage once again reinforced that cyber security is not a winner takes all markets. The systemic risks of single vendor concentration are abundantly cleared, after recent events, customer interest in our platform in AI-based security have distinctly risen. This is a new era of cyber security, and we are in a leading position, it's certainly early and will play out in months and years to come. As always, our goal remains delivering the best possible security and value to customers and partners, we're focused on keeping customers up and running, this should be a given, enterprises need reliability, not disrupt. As we look ahead, our teams are exceeding well and our go-to market is getting momentum, we have the winning technology and our competitive position is stronger than ever. Our financial performance remains industry leading, and we achieved positive net income for the first time. This is an incredibly dynamic time for us and the industry, investing in the business for growth and scale is the right step forward. For years, we've led the industry with innovations, and now we're seeing an expanding interest in SentinelOne's AI-powered autonomous security.

Tomer Weingarten: We look forward to connecting again at our investor technology sessions at our one con conference in October.

Speaker Change: We look forward to connecting again at our investor, technology sessions, at our one-con conference in October. With that, I would turn the code over to Dave Bernhardt, our chief financial officer.

David Bernhardt: With that, I would turn the call over to Dave Bernhardt, our chief financial officer. Thank you, Toma, and thank you everyone again for joining us. This afternoon, I'll discuss our quarterly financial performance and provide additional context regarding our guidance for Q3 and fiscal year 25.

David Bernhardt: As a reminder, all comparisons are year-over-year and financial measures discussed here, non-GAP, unless otherwise noted. Once again, our second quarter results not only met, but exceeded our revenue and margin expectations. We continue to lead the industry in terms of technology, revenue growth, and margin expansion. We also delivered our first ever quarter of positive net income and earnings for share, another significant milestone on our path to sustained profitability. Revenue grew 33% to $199 million in the second quarter.

Dave Bernhardt: As a reminder, all comparisons are year over year and financial measures discussed here in non-gap and less otherwise noted.

Tomer Weingarten: The difference is vast, we're constantly pushing the envelope with purple AI. In Q2, we launched alert summaries, these provide AI-generated contextual summaries of alerts, so analysts can easily view and understand the details and scope of their alerts across their environment. Finally, we have rapidly expanded our cloud security product offerings, which now provides extensive and highly performant runtime protection and posture management solutions. Our scene app portfolio is the highest rated by G2 summer grid reports, it now includes CSPM, available worldwide, and CIM, securing identities and entitlements for cloud infrastructure. Our pace of innovation and autonomous security approach is sending you into three benchmarks, we're widening the gap in a significant way. As we look beyond the second quarter, the path forward for central one is bright. Demand indicators are strong, new business growth trends are poised to improve, and we're achieving new profitability milestones. The continuation of high profile breaches and the recent global outage once again reinforced that cyber security is not a winner takes all markets. The systemic risks of single vendor concentration are abundantly cleared, after recent events, customer interest in our platform in AI-based security have distinctly risen. This is a new era of cyber security, and we are in a leading position, it's certainly early and will play out in months and years to come. As always, our goal remains delivering the best possible security and value to customers and partners, we're focused on keeping customers up and running, this should be a given, enterprises need reliability, not disrupt. As we look ahead, our teams are exceeding well and our go-to market is getting momentum, we have the winning technology and our competitive position is stronger than ever. Our financial performance remains industry leading, and we achieved positive net income for the first time. This is an incredibly dynamic time for us and the industry, investing in the business for growth and scale is the right step forward. For years, we've led the industry with innovations, and now we're seeing an expanding interest in SentinelOne's AI-powered autonomous security.

Dave Bernhardt: Once again, our second quarter results not only met but exceeded our revenue and margin expectations. We continue to lead the industry in terms of technology, revenue growth and margin expansion.

Dave Bernhardt: We also delivered our first ever quarter of positive net income and earnings for share, another significant milestone on our path to sustained profitability.

Dave Bernhardt: Revenue Group 33% to 199 million in the second quarter. Our growth was also balanced across geographies.

David Bernhardt: Our growth was also balanced across geographies. Revenue from international markets grew 36% representing 37% of our quarterly revenue. Our total ARR grew 32% to $806 million. We added $44 million in net new ARR in the quarter, which exceeded our expectations by a double digit percentage. New customer logos and wins across endpoint, cloud, and data remain the key drivers of new business growth. We also maintained healthy expansion rates from existing customers. Consistent with the view we shared last quarter, we continue to expect better net new ARR growth trends in the second half of the year, driven by a strong pipeline, new product contributions, and expanding go-to-market.

Dave Bernhardt: Revenue from International Markets grew 36% representing 37% of our quarterly revenue.

Dave Bernhardt: Our total ARR group 32% to 860 million.

Tomer Weingarten: Our pace of innovation and autonomous security approach is sending you into three benchmarks, we're widening the gap in a significant way. As we look beyond the second quarter, the path forward for central one is bright. Demand indicators are strong, new business growth trends are poised to improve, and we're achieving new profitability milestones. The continuation of high profile breaches and the recent global outage once again reinforced that cyber security is not a winner takes all markets. The systemic risks of single vendor concentration are abundantly cleared, after recent events, customer interest in our platform in AI-based security have distinctly risen. This is a new era of cyber security, and we are in a leading position, it's certainly early and will play out in months and years to come. As always, our goal remains delivering the best possible security and value to customers and partners, we're focused on keeping customers up and running, this should be a given, enterprises need reliability, not disrupt. As we look ahead, our teams are exceeding well and our go-to market is getting momentum, we have the winning technology and our competitive position is stronger than ever. Our financial performance remains industry leading, and we achieved positive net income for the first time. This is an incredibly dynamic time for us and the industry, investing in the business for growth and scale is the right step forward. For years, we've led the industry with innovations, and now we're seeing an expanding interest in SentinelOne's AI-powered autonomous security.

Dave Bernhardt: We added 44 million in net UAR in the quarter which exceeded our expectations by a double-digit percentage.

Dave Bernhardt: New customer logos and wins across endpoint, cloud, and data remain the key drivers of new business growth. We also maintain healthy expansion rates from existing customers.

Dave Bernhardt: Consistent with the view we shared last quarter, we continued to expect better net new ARR growth trends in the second half of the year, driven by a strong pipeline, new product contributions and expanding go to market.

David Bernhardt: Compared to ARR, remaining purchase obligations once again grew at a strong pace, up 40% year over year, as we continue to sign larger and longer term contracts. This is important as it provides us with longer term visibility and sustainable future growth. Looking beyond our top line, gross margin also increased sequentially to a record high of 80%. This was an increase of three percentage points year over year. Our best in-class gross margin indicates healthy pricing and the success of our value added approach.

Dave Bernhardt: Compared to ARR, remaining purchase obligations once again grew at a strong pace, up 40% year over year, as we continue to sign larger and longer-term contracts. This is important as it provides us with longer-term visibility and sustainable future growth.

Tomer Weingarten: This is a new era of cyber security, and we are in a leading position, it's certainly early and will play out in months and years to come. As always, our goal remains delivering the best possible security and value to customers and partners, we're focused on keeping customers up and running, this should be a given, enterprises need reliability, not disrupt. As we look ahead, our teams are exceeding well and our go-to market is getting momentum, we have the winning technology and our competitive position is stronger than ever. Our financial performance remains industry leading, and we achieved positive net income for the first time. This is an incredibly dynamic time for us and the industry, investing in the business for growth and scale is the right step forward. For years, we've led the industry with innovations, and now we're seeing an expanding interest in SentinelOne's AI-powered autonomous security.

Dave Bernhardt: Looking beyond our top line, Rose Margin also increased sequentially to a record high of 80%.

Dave Bernhardt: This was an increase of 3 percentage points year over year, our best-in-class gross margin indicates healthy pricing and the success of our value added approach. Our unified platform architecture delivers better, unideconomics for Sentinel-1 and our customers.

David Bernhardt: Our unified platform architecture delivers better unit economics for Sentinel one and our customers. In addition, we continue to make extraordinary improvements to our operating and net income margins. Q2 is truly a record-setting quarter, our first with positive net income and earnings for share. In parallel, our EBIT margin of negative 3 percent outperformed our Q2 guidance by 3 percentage points. This also shows an improvement of 19 percentage points compared to a year ago.

Dave Bernhardt: In addition, we continue to make extraordinary improvements to our operating and net income margins. Q2 is truly a record setting quarter, our first with positive net income and earnings per share.

Tomer Weingarten: Our financial performance remains industry leading, and we achieved positive net income for the first time. This is an incredibly dynamic time for us and the industry, investing in the business for growth and scale is the right step forward. For years, we've led the industry with innovations, and now we're seeing an expanding interest in SentinelOne's AI-powered autonomous security. In closing, our technology, teams, and financial profile are stronger than ever. I extend my gratitude to our incredible teams, together, we are paving the path to maximizing our business potential, which importantly, we're focused on helping enterprises advance their infrastructure and security. I want to thank all Sentinels, as well as our valued customers, partners, and shareholders, we look forward to connecting again at our investor technology sessions at our OneCon conference in October. With that, I would turn the call over to Dave Bernhardt, our chief financial officer.

Dave Bernhardt: In parallel, our even margin of negative 3% outperformed our Q2 guidance by 3% inch points.

Dave Bernhardt: This also shows an improvement of 19 percentage points compared to a year ago.

David Bernhardt: Our increasing scale, efficiencies, and cost discipline continues to drive substantial operating margin improvement. In Q2, we continue to generate positive operating cash flow margin, and I'm extremely proud to achieve a positive 2 percent net income margin and positive earnings for share. We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter. Our unit economics and financial position remain incredibly strong. We have over $1 billion in cash, cash equivalents, and investments in zero debt. This provides us with ample durability and flexibility. To this extent, we have already demonstrated tremendous potential for leverage across the business.

Dave Bernhardt: Our increasing scale, efficiencies and cost discipline continues to drive substantial operating margin improvement.

Dave Bernhardt: In Q2, we continue to generate positive operating cash flow margin and I'm extremely proud to achieve a positive 2% net income margin and positive earnings per share.

Dave Bernhardt: We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter.

Dave Bernhardt: Our Unirdekonomics and Financial Position remain incredibly strong. We have over $1 billion in cash, cash equivalence, and investments in zero debt.

Tomer Weingarten: I want to thank all Sentinels, as well as our valued customers, partners, and shareholders, we look forward to connecting again at our investor technology sessions at our OneCon conference in October. With that, I would turn the call over to Dave Bernhardt, our chief financial officer.

Dave Bernhardt: This provides us with ample durability and flexibility. To this extent, we have already demonstrated tremendous potential for leverage across the business.

David Bernhardt: Moving to our guidance for Q3 and full fiscal year 25, looking ahead, we remain optimistic about our growth trajectory. For Q3, we expect revenue of about 209.5 million up 28 percent year over year. For the full year, we expect revenue of about 815 million up 31 percent year over year. Our higher revenue guidance reflects a 3.5 million increase compared to the midpoint of our prior guidance range, which exceeds the magnitude of our Q2 over performance.

With that, I would turn the call over to Dave Bernhardt, our chief financial officer.

Dave Bernhardt: Moving to our guidance for Q3 and full fiscal year 25.

Dave Bernhardt: Thank you, Tomer, and thank you everyone again for joining us. This afternoon, I'll discuss our quarterly financial performance and provide additional context regarding our guidance for Q3 and fiscal year '25. As a reminder, all comparisons are year-over-year and financial measures discussed here, non-GAP, unless otherwise noted. Once again, our second quarter results not only met, but exceeded our revenue and margin expectations, we continue to lead the industry in terms of technology, revenue growth, and margin expansion. We also delivered our first ever quarter of positive net income and earnings for share, another significant milestone on our path to sustained profitability. Revenue grew 33% to $199 million in the second quarter, our growth was also balanced across geographies. Revenue from international markets grew 36% representing 37% of our quarterly revenue. Our total ARR grew 32% to $806 million, we added $44 million in net new ARR in the quarter, which exceeded our expectations by a double digit percentage. New customer logos and wins across endpoint, cloud, and data remain the key drivers of new business growth, we also maintained healthy expansion rates from existing customers. Consistent with the view we shared last quarter, we continue to expect better net new ARR growth trends in the second half of the year, driven by a strong pipeline, new product contributions, and expanding go-to-market. Compared to ARR, remaining purchase obligations once again grew at a strong pace, up 40% year over year, as we continue to sign larger and longer term contracts, this is important as it provides us with longer term visibility and sustainable future growth. Looking beyond our top line, gross margin also increased sequentially to a record high of 80%, this was an increase of three percentage points year over year. Our best in-class gross margin indicates healthy pricing and the success of our value added approach. Our unified platform architecture delivers better unit economics for Sentinel one and our customers. In addition, we continue to make extraordinary improvements to our operating and net income margins, Q2 is truly a record-setting quarter, our first with positive net income and earnings per share. In parallel, our EBIT margin of -3% outperformed our Q2 guidance by 3 percentage points, this also shows an improvement of 19 percentage points compared to a year ago. Our increasing scale, efficiencies, and cost discipline continues to drive substantial operating margin improvement. In Q2, we continue to generate positive operating cash flow margin, and I'm extremely proud to achieve a positive 2% net income margin and positive earnings for share. We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter. Our unit economics and financial position remain incredibly strong, we have over $1 billion in cash, cash equivalents, and investments in zero debt. This provides us with ample durability and flexibility, to this extent, we have already demonstrated tremendous potential for leverage across the business.

Dave Bernhardt: Looking ahead, we remain optimistic about our growth trajectory.

Dave Bernhardt: For Q3, we expect revenue of about 209.5 million up 28% year over year.

Dave Bernhardt: For the full year we expect revenue of about 815 million up 31% year over year.

Dave Bernhardt: Our higher revenue guidance reflects a 3.5 million increase compared to the midpoint of our prior guidance range, which exceeds the magnitude of our Q2 over performance.

David Bernhardt: This increase reflects our confidence despite the persistently challenging macro economic environment. As I mentioned earlier, we continue to expect better growth trends in the second half of the year. Specifically, we expect second half net new ARR growth to improve compared to the first half of the year. Our confidence is driven by early indications from go-to-market enhancements, a strong second half pipeline, improved competitive position, and traction with newer solutions like CNAP, AI, and data.

Dave Bernhardt: This increased reflects our confidence despite the persistently challenging macroeconomic environment.

Dave Bernhardt: As I mentioned earlier, we continue to expect better growth trends in the second half of the year.

Dave Bernhardt: Specifically, we expect second half net new ARR growth to improve compared to the first half of the year.

Dave Bernhardt: Revenue grew 33% to $199 million in the second quarter, our growth was also balanced across geographies. Revenue from international markets grew 36% representing 37% of our quarterly revenue. Our total ARR grew 32% to $806 million, we added $44 million in net new ARR in the quarter, which exceeded our expectations by a double digit percentage. New customer logos and wins across endpoint, cloud, and data remain the key drivers of new business growth, we also maintained healthy expansion rates from existing customers. Consistent with the view we shared last quarter, we continue to expect better net new ARR growth trends in the second half of the year, driven by a strong pipeline, new product contributions, and expanding go-to-market. Compared to ARR, remaining purchase obligations once again grew at a strong pace, up 40% year over year, as we continue to sign larger and longer term contracts, this is important as it provides us with longer term visibility and sustainable future growth. Looking beyond our top line, gross margin also increased sequentially to a record high of 80%, this was an increase of three percentage points year over year. Our best in-class gross margin indicates healthy pricing and the success of our value added approach. Our unified platform architecture delivers better unit economics for Sentinel one and our customers. In addition, we continue to make extraordinary improvements to our operating and net income margins, Q2 is truly a record-setting quarter, our first with positive net income and earnings per share. In parallel, our EBIT margin of -3% outperformed our Q2 guidance by 3 percentage points, this also shows an improvement of 19 percentage points compared to a year ago. Our increasing scale, efficiencies, and cost discipline continues to drive substantial operating margin improvement. In Q2, we continue to generate positive operating cash flow margin, and I'm extremely proud to achieve a positive 2% net income margin and positive earnings for share. We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter. Our unit economics and financial position remain incredibly strong, we have over $1 billion in cash, cash equivalents, and investments in zero debt. This provides us with ample durability and flexibility, to this extent, we have already demonstrated tremendous potential for leverage across the business.

Dave Bernhardt: Our confidence is driven by early indications from go-to-market enhancements, a strong second half pipeline, improved competitive position and traction with new resolutions like CNAP, AI and data.

David Bernhardt: Turning to our outlook for margins, in Q3, we expect growth margin to be about 79 percent. We are also raising our full year growth margin guidance to 79 percent, the high end of our prior range. We expect Q3 operating margin to be negative 3 percent, an improvement of about 8 percentage points year over year. On a full year basis, we are narrowing our range to between negative 5 to negative 3 percent, an improvement of about 15 percentage points at the midpoint compared to fiscal year 24.

Dave Bernhardt: Turning to our outlook for margins, in Q3 we expect gross margin to be about 79%. We are also raising our full-year gross margin guidance to 79% the high end of our prior range.

Dave Bernhardt: We expect Q3 operating margin to be negative 3% and approve of about 8% at points a year over year.

Dave Bernhardt: Consistent with the view we shared last quarter, we continue to expect better net new ARR growth trends in the second half of the year, driven by a strong pipeline, new product contributions, and expanding go-to-market. Compared to ARR, remaining purchase obligations once again grew at a strong pace, up 40% year over year, as we continue to sign larger and longer term contracts, this is important as it provides us with longer term visibility and sustainable future growth. Looking beyond our top line, gross margin also increased sequentially to a record high of 80%, this was an increase of three percentage points year over year. Our best in-class gross margin indicates healthy pricing and the success of our value added approach. Our unified platform architecture delivers better unit economics for Sentinel one and our customers. In addition, we continue to make extraordinary improvements to our operating and net income margins, Q2 is truly a record-setting quarter, our first with positive net income and earnings per share. In parallel, our EBIT margin of -3% outperformed our Q2 guidance by 3 percentage points, this also shows an improvement of 19 percentage points compared to a year ago. Our increasing scale, efficiencies, and cost discipline continues to drive substantial operating margin improvement. In Q2, we continue to generate positive operating cash flow margin, and I'm extremely proud to achieve a positive 2% net income margin and positive earnings for share. We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter. Our unit economics and financial position remain incredibly strong, we have over $1 billion in cash, cash equivalents, and investments in zero debt. This provides us with ample durability and flexibility, to this extent, we have already demonstrated tremendous potential for leverage across the business.

Dave Bernhardt: On a full year basis, we are narrowing our range between negative 5 to negative 3% and a proven of about 15 percentage points at the midpoint compared to fiscal year 24.

David Bernhardt: We are operating in an incredibly dynamic environment, given the profound evolution of our technology and the competitive opportunities in front of us, we are leaning into investment to grow in scale and market presence. We are encouraging already yielding positive results, including strong Q2 growth and record margins. Based on the demand trends and opportunities for increased market share gains, we may elect to invest more in the business. Our elective investments weigh long-term growth potential with delivering a solid, responsible, and profitable financial profile.

Dave Bernhardt: We are operating in an incredibly dynamic environment, given the profound evolution of our technology and the competitive opportunities in front of us we are leaning into investment to grow in scale and market presence.

Dave Bernhardt: We're encouraging its already yielding positive results, including strong Q2 growth and record margins.

Dave Bernhardt: Based on the demand trends and opportunities for increased market share gains, we may elect to invest more in the business.

Dave Bernhardt: Our elective investments weigh long-term growth potential with delivering a solid, responsible and profitable financial profile. This has never been more important than today and is the right strategy.

Dave Bernhardt: Our best in-class gross margin indicates healthy pricing and the success of our value added approach. Our unified platform architecture delivers better unit economics for Sentinel one and our customers. In addition, we continue to make extraordinary improvements to our operating and net income margins, Q2 is truly a record-setting quarter, our first with positive net income and earnings per share. In parallel, our EBIT margin of -3% outperformed our Q2 guidance by 3 percentage points, this also shows an improvement of 19 percentage points compared to a year ago. Our increasing scale, efficiencies, and cost discipline continues to drive substantial operating margin improvement. In Q2, we continue to generate positive operating cash flow margin, and I'm extremely proud to achieve a positive 2% net income margin and positive earnings for share. We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter. Our unit economics and financial position remain incredibly strong, we have over $1 billion in cash, cash equivalents, and investments in zero debt. This provides us with ample durability and flexibility, to this extent, we have already demonstrated tremendous potential for leverage across the business.

David Bernhardt: This has never been more important than today and is the right strategy. This year we have proven the ability to drive profitability and positive free cash flow. Our platform has strong underlying retention rates with potential for significant future expansion opportunities. Our investments in AI, data, and cloud security are reshaping the cybersecurity landscape and will drive our next phase of growth, bringing greater scale and cementing more diverse business.

Dave Bernhardt: This year we have proven the ability to drive profitability and positive free cash flow. Our platform has strong underlying retention rates with potential for significant future expansion opportunities.

Dave Bernhardt: Our investments in AI, data and cloud security are reshaping the cybersecurity landscape and we'll drive our next phase of growth, bringing greater scale and cementing a more diverse business mix.

Dave Bernhardt: We've entered a new dawn for cybersecurity to say it's right for disruption is an understatement.

Dave Bernhardt: Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. That our security and reliability must be the way forward.

David Bernhardt: We've entered a new dawn for cybersecurity. To say it's right for disruption is an understatement. Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable. We have come so far, so fast. The future is just as bright.

Dave Bernhardt: In Q2, we continue to generate positive operating cash flow margin, and I'm extremely proud to achieve a positive 2% net income margin and positive earnings for share. We have been working towards achieving profitability since our IPO and have been unwaveringly delivering industry leading margin expansion every single quarter. Our unit economics and financial position remain incredibly strong, we have over $1 billion in cash, cash equivalents, and investments in zero debt. This provides us with ample durability and flexibility, to this extent, we have already demonstrated tremendous potential for leverage across the business. Moving to our guidance for Q3 and full fiscal year 25, looking ahead, we remain optimistic about our growth trajectory. For Q3, we expect revenue of about 209.5 million up 28 percent year over year. For the full year, we expect revenue of about 815 million up 31 percent year over year. Our higher revenue guidance reflects a 3.5 million increase compared to the midpoint of our prior guidance range, which exceeds the magnitude of our Q2 over performance.

Dave Bernhardt: With a singularity platform we deliver superior protection, leading AI capabilities, an open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks.

Speaker Change: We're investing in our scale and reach that over time we'll bring Sentinel 1 to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making Sentinel 1 profitable. We have come so far, so fast, the future is just as bright.

Speaker Change: Thank you all for joining us today. We will now take questions. Operator, please open up the line.

Dave Bernhardt: Moving to our guidance for Q3 and full fiscal year 25, looking ahead, we remain optimistic about our growth trajectory. For Q3, we expect revenue of about 209.5 million up 28 percent year over year. For the full year, we expect revenue of about 815 million up 31 percent year over year. Our higher revenue guidance reflects a 3.5 million increase compared to the midpoint of our prior guidance range, which exceeds the magnitude of our Q2 over performance. This increase reflects our confidence despite the persistently challenging macro economic environment. As I mentioned earlier, we continue to expect better growth trends in the second half of the year. Specifically, we expect second half net new ARR growth to improve compared to the first half of the year. Our confidence is driven by early indications from go-to-market enhancements, a strong second half pipeline, improved competitive position, and traction with newer solutions like CNAP, AI, and data. Turning to our outlook for margins, in Q3, we expect growth margin to be about 79 percent. We are also raising our full year growth margin guidance to 79 percent, the high end of our prior range. We expect Q3 operating margin to be negative 3 percent, an improvement of about 8 percentage points year over year. On a full year basis, we are narrowing our range to between negative 5 to negative 3 percent, an improvement of about 15 percentage points at the midpoint compared to fiscal year 24. We are operating in an incredibly dynamic environment, given the profound evolution of our technology and the competitive opportunities in front of us, we are leaning into investment to grow in scale and market presence. We are encouraging already yielding positive results, including strong Q2 growth and record margins. Based on the demand trends and opportunities for increased market share gains, we may elect to invest more in the business. Our elective investments weigh long-term growth potential with delivering a solid, responsible, and profitable financial profile. This has never been more important than today and is the right strategy. This year we have proven the ability to drive profitability and positive free cash flow. Our platform has strong underlying retention rates with potential for significant future expansion opportunities. Our investments in AI, data, and cloud security are reshaping the cybersecurity landscape and will drive our next phase of growth, bringing greater scale and cementing more diverse business. We've entered a new dawn for cybersecurity. To say it's right for disruption is an understatement. Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable. We have come so far, so fast. The future is just as bright. Thank you all for joining us today, we will now take questions. Operator, please open up the line. Thank you.

Speaker Change: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star, followed by one on your telephone keypad.

Speaker Change: Weingarten, you would like to remove that question.

Speaker Change: Chris, star followed by two.

Cameron: Thank you all for joining us today. We will now take questions. Operator, please open up the line. Thank you.

Speaker Change: Again, ask a question, please press star 1 and during the Q&A session.

Speaker Change: Please limit your questions to one question, or person, and if you are using a speaker phone, please pick up your hand before asking your question and we will pause your briefly as questions are registered.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, press star followed by two. Again, to ask a question, please press star one. And during the Q&A session, please limit your questions to one question or person. And if you were using a speaker phone, please pick up your hand said before asking your question. And we will pause here briefly as questions are registered.

Speaker Change: The first question is from the one of Gabriella Borges with Goldman Sachs, you may perceive.

Dave Bernhardt: Specifically, we expect second half net new ARR growth to improve compared to the first half of the year. Our confidence is driven by early indications from go-to-market enhancements, a strong second half pipeline, improved competitive position, and traction with newer solutions like CNAP, AI, and data. Turning to our outlook for margins, in Q3, we expect growth margin to be about 79 percent. We are also raising our full year growth margin guidance to 79 percent, the high end of our prior range. We expect Q3 operating margin to be negative 3 percent, an improvement of about 8 percentage points year over year. On a full year basis, we are narrowing our range to between negative 5 to negative 3 percent, an improvement of about 15 percentage points at the midpoint compared to fiscal year 24. We are operating in an incredibly dynamic environment, given the profound evolution of our technology and the competitive opportunities in front of us, we are leaning into investment to grow in scale and market presence. We are encouraging already yielding positive results, including strong Q2 growth and record margins. Based on the demand trends and opportunities for increased market share gains, we may elect to invest more in the business. Our elective investments weigh long-term growth potential with delivering a solid, responsible, and profitable financial profile. This has never been more important than today and is the right strategy. This year we have proven the ability to drive profitability and positive free cash flow. Our platform has strong underlying retention rates with potential for significant future expansion opportunities. Our investments in AI, data, and cloud security are reshaping the cybersecurity landscape and will drive our next phase of growth, bringing greater scale and cementing more diverse business. We've entered a new dawn for cybersecurity. To say it's right for disruption is an understatement. Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable. We have come so far, so fast. The future is just as bright. Thank you all for joining us today, we will now take questions. Operator, please open up the line. Thank you.

Gabriella Borges: Good afternoon. Thank you.

Gabriella Borges: So, where I want to follow up on some of the architectural strengths that you highlighted in the pattern marks, particularly the fewer updates and the lower level of highlights that you talked about. How are you able to maintain the same level of efficacy?

Speaker Change: with mitigating the Worcester Federal Access in the European Union. How is that architectural strength translating to some of the pipeline conversations you're having? Is there a way to think about it?

Speaker Change: [inaudible]

Gabriella Borges: The first question is from the line of Gabriella for gets with Goldman Sachs. You may proceed. Good afternoon. Thank you. I want to follow up on some of the architectural strengths that you highlighted in this webinar, particularly the fewer updates and the lower level of parallaxes that you talked about. How are you able to maintain the same level of efficacy with mitigating the risk of parallaxes and tier updates? And how is that architectural strength translating to some of the pipeline conversations you're having? Is there a way to think about what percentage of customers are thinking about dual sourcing versus single sourcing? And why the industry might go from our full sourcing versus dual sourcing standpoint? Thank you.

Dave Bernhardt: On a full year basis, we are narrowing our range to between negative 5 to negative 3 percent, an improvement of about 15 percentage points at the midpoint compared to fiscal year 24. We are operating in an incredibly dynamic environment, given the profound evolution of our technology and the competitive opportunities in front of us, we are leaning into investment to grow in scale and market presence. We are encouraging already yielding positive results, including strong Q2 growth and record margins. Based on the demand trends and opportunities for increased market share gains, we may elect to invest more in the business. Our elective investments weigh long-term growth potential with delivering a solid, responsible, and profitable financial profile. This has never been more important than today and is the right strategy. This year we have proven the ability to drive profitability and positive free cash flow. Our platform has strong underlying retention rates with potential for significant future expansion opportunities. Our investments in AI, data, and cloud security are reshaping the cybersecurity landscape and will drive our next phase of growth, bringing greater scale and cementing more diverse business. We've entered a new dawn for cybersecurity. To say it's right for disruption is an understatement. Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable. We have come so far, so fast. The future is just as bright. Thank you all for joining us today, we will now take questions. Operator, please open up the line. Thank you.

Speaker Change: So, let's try to be clear about what happened. We're talking about the largest ever IT voltage systematically impacting millions of people.

Speaker Change: is dropped in thousands of business, you know, costing billions of dollars and you know, this was a...

Speaker Change: Global Practically Fleetwide Outage, Todian Presidente in Reach in Scale and secondly also the duration of the Outage I think was also quite unprecedented, most modern technology services, you know.

Speaker Change: Don't really take days to come back online, and this has been days to weeks, required manual intervention and reboot of millions of affected devices. I've truly never seen anything like this in my lifetime.

Dave Bernhardt: Our elective investments weigh long-term growth potential with delivering a solid, responsible, and profitable financial profile. This has never been more important than today and is the right strategy. This year we have proven the ability to drive profitability and positive free cash flow. Our platform has strong underlying retention rates with potential for significant future expansion opportunities. Our investments in AI, data, and cloud security are reshaping the cybersecurity landscape and will drive our next phase of growth, bringing greater scale and cementing more diverse business. We've entered a new dawn for cybersecurity. To say it's right for disruption is an understatement. Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable. We have come so far, so fast. The future is just as bright. Thank you all for joining us today, we will now take questions. Operator, please open up the line. Thank you.

Tomer Weingarten: So let's try to kind of be clear about what happened, I mean, we're talking about the largest ever IT outage, systematically impacting millions of people, disrupting thousands of businesses, costing billions of dollars. And, you know, this was a global, practically-fleet wide outage, totally unprecedented in reach and scale, and secondly, also the duration of the outage, I think was also quite unprecedented. Most modern technology services, you know, don't really take days to come back online, and, you know, this has been days to weeks, required manual intervention, and reboot of millions of affected devices, I've truly never seen anything like this, you know, in my lifetime. I think immediately you understand the level of uncertainty and concern amongst, you know, customers out there. It goes into question the entire software development best practices of that vendor, and I think as a result, you know, when it goes back to your question, you know, what does it mean for SentinelOne? And if you think about our architecture, I think what's immediately clear is that we don't require the same number of updates, we embed AI models into the endpoint agent. And we have removed and moved away significantly from being Kernel-dependent for about five or seven years, to the point that on the mac operating system, we're not at the Kernel at all. You know, the Linux operating system, we're not touching the Kernel at all, and even on windows, we minimize what we do. So even when you download updates, they actually live in a different part of the system, and obviously, moving away from the Kernel is incredibly beneficial to systems stability, in the kernel every small update, every small adjustment can result, every small mistake results in a blue screen or instability. That's why most vendors try to minimize what they do at the kernel level, and I think that's exactly what SentinelOne does, to the point once again in other operating systems, we're not even touching the Kernel. So if you kind of think about what happened here, both in terms of this testing methodology, the deployment cadence, customer control over deployment, all of those for us has been, you know, our day to day for the past 10 years. We're not starting now with the new deployment process, and I think that's good customers, you know, appreciate that. You know, there's there's a definite question here on whether, you know, not testing anything.

Speaker Change: I think immediately you understand the level of uncertainty and concern among customers out there.

Speaker Change: It's called into question the entire social development practices of that vendor and I think as a result, you know, it goes back to your question.

Speaker Change: You know what does it mean?

Speaker Change: Ford Sentinel 1.

Speaker Change: And if you think about our architecture, I think what's immediately clear is that we don't require the same number of updates, we embed AI models into the endpoint agent and we have removed and moved away significantly.

Dave Bernhardt: To say it's right for disruption is an understatement. Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable. We have come so far, so fast. The future is just as bright. Thank you all for joining us today, we will now take questions. Operator, please open up the line. Thank you.

Dave Bernhardt: To say it's right for disruption is an understatement.

Dave Bernhardt: Self-proclaimed industry leaders are now facing the same challenges as legacy solutions. Better security and reliability must be the way forward. With the Singularity platform we deliver superior protection, leading AI capabilities, and open architecture to improve resilience and a streamlined analyst experience to prevent modern attacks. We're investing in our scale and reach that over time will bring SentinelOne to the forefront of millions more endpoints and businesses. I couldn't be more proud of our commitment and performance to making SentinelOne profitable, we have come so far, so fast, the future is just as bright. Thank you all for joining us today, we will now take questions. Operator, please open up the line. Thank you.

Speaker Change: from being Colonel Deependant.

Tomer Weingarten: And, you know, this has been days to weeks required manual intervention and reboot of millions of affected devices. I've truly never seen anything like this, you know, in my lifetime. I think immediately you understand the level of uncertainty and concern amongst, you know, customers out there. It goes into question the entire software development best practices of that vendor. And I think as a result, you know, when it goes back to your question, you know, what does it mean for Sentinel one?

Speaker Change: for about five or seven years to the point that...

Speaker Change: On the macro operating system, we're not at the kernel at all, you know, the Linux operating system, we're not touching the kernel at all, and even when those, we minimize what we do. So even when you download updates.

Speaker Change: They actually live in a different part of the system and obviously

Speaker Change: Moving away from the kernel is incredibly beneficial to systems stability. In the kernel, every small update, every small adjustment can result. Every small mistake results in a blue screen or instability. That's why most vendors try to minimize what they do at the kernel level. And I think that's exactly what says the one does to the point once again in other operating systems, not even touching the kernel. So if you kind of think about what happened here, you both in terms of the testing methodology, the deployment cadence, customer control over deployment. All of those for us has been, you know, our day-to-day for the past 10 years. We're not starting now with the new deployment process.

Tomer Weingarten: And if you think about our architecture, I think what's immediately clear is that we don't require the same number of updates. We embed AI models into the endpoint agent. And we have removed and moved away significantly from being kernel dependent for about five or seven years to the point that on the mac operating system, we're not at the kernel at all. You know, the Linux operating system, we're not touching the kernel at all.

Operator: Thank you, we will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad, if for any reason you would like to remove that question, press star followed by two. Again, to ask a question, please press star one, and during the Q&A session, please limit your questions to one question or person, and if you were using a speaker phone, please pick up your hand said before asking your question. And we will pause here briefly as questions are registered. The first question is from the line of Gabriella Borges, with Goldman Sachs, you may proceed.

Speaker Change: and I think it was good customers, you know, appreciate that, you know, there's a definite question here on whether, you know, not testing anything, when you deploy it, Colonel L.S. where is even meeting the minimum standard care. I think that, you know, it's so, you know,

Tomer Weingarten: And even on windows, we minimize what we do. So even when you download updates, they actually live in a different part of the system. And obviously moving away from the kernel is incredibly beneficial to systems stability in the kernel every small update, every small adjustment can result every small mistake results in a blue screen or instability. That's why most vendors try to minimize what they do at the kernel level. And I think that's exactly what Sentinel one does to the point once again in other operating systems, we're not even touching the kernel.

The first question is from the line of Gabriella for gets with Goldman Sachs. You may proceed.

Gabriela Borges: Good afternoon, thank you. Tomer, I want to follow up on some of the architectural strengths that you highlighted in this webinar, particularly the fewer updates and the lower level of parallaxes that you talked about. How are you able to maintain the same level of efficacy with mitigating the risk of parallaxes and TR updates? And how is that architectural strength translating to some of the pipeline conversations you're having? Is there a way to think about what percentage of customers are thinking about dual sourcing, versus single sourcing? And why the industry might go from a full sourcing versus dual sourcing standpoint? Thank you.

Speaker Change: So shocking to see the level of deployment with no testing whatsoever and I think that customers are first.

Speaker Change: Trying to assert.

Speaker Change: What level of control they have over deployment, and once again with central one it's full control, we never deploy without their knowledge, we never deploy fleet wide, and that is again a stark difference from what you've seen, you know, from from CrowdStrike. So, these are the two, I think, immediate architectural, you know, differences that you have between the different products, then you go into, you know, our core innovation, and our patented behavior really eye, which obviously has been designed to deal with attacks in real time on the end point itself with no updates, that's.

Speaker Change: You know, kind of the claim to fame that next generation vendors had.

Speaker Change: Over the anti-virus vendors, you're not going to need all these updates, because you're building AI into these systems to be able to detect generically regardless of signatures of very specific indicators.

Speaker Change: We have truly moved away from that. We're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are still very much leaning into these IOC's signature type updates.

Tomer Weingarten: We need deployed kernel elsewhere is even meeting the minimum of standard care. I think that, you know, it's so So shocking to see the level of deployment with no testing whatsoever and I think that customers are first trying to assert what level of control they have over deployment. And once again, with Sentinel One, it's full control. We never deploy without their knowledge, we never deploy fleet wide. And that is, again, a stark difference from what you've seen, you know, from CrowdStrike.

Speaker Change: and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work that have not been in the spotlight nor were they clear to customers. And I think what happened will be see puts this.

Tomer Weingarten: I think immediately you understand the level of uncertainty and concern amongst, you know, customers out there. It goes into question the entire software development best practices of that vendor, and I think as a result, you know, when it goes back to your question, you know, what does it mean for SentinelOne? And if you think about our architecture, I think what's immediately clear is that we don't require the same number of updates, we embed AI models into the endpoint agent. And we have removed and moved away significantly from being Kernel-dependent for about five or seven years, to the point that on the mac operating system, we're not at the Kernel at all. You know, the Linux operating system, we're not touching the Kernel at all, and even on windows, we minimize what we do. So even when you download updates, they actually live in a different part of the system, and obviously, moving away from the Kernel is incredibly beneficial to systems stability, in the kernel every small update, every small adjustment can result, every small mistake results in a blue screen or instability. That's why most vendors try to minimize what they do at the kernel level, and I think that's exactly what SentinelOne does, to the point once again in other operating systems, we're not even touching the Kernel. So if you kind of think about what happened here, both in terms of this testing methodology, the deployment cadence, customer control over deployment, all of those for us has been, you know, our day to day for the past 10 years. We're not starting now with the new deployment process, and I think that's good customers, you know, appreciate that. You know, there's there's a definite question here on whether, you know, not testing anything.

Speaker Change: I think that's important to to mention is that this doesn't really even appear to be a one-time thing or a soul issue I mean this is a pretty significant architectural difference here you know just last week in Europe there were new reports of Falcon causing more cloud service issues, performance problems, lagging boot times.

Tomer Weingarten: So these are the two, I think immediate architectural, you know, different differences that you have between the different products. Then you go into, you know, our core innovation and our patented behavioral AI, which obviously has been designed to deal with attacks in real time on the end point itself with no updates. That's, you know, kind of the claim to fame that next generation vendors had over the antivirus vendors, you're not going to need all these updates because we're building AI into these systems to be able to detect generically regardless of signature as a very specific indicators.

Speaker Change: So that decision to be very cloud-dependent, that I think for years people have painted as an advantage. I think it's kind of turning out to be pretty, pretty, pretty. I would say drawback of that same approach versus a more embedded in augmented approach that's at the one tube for years now.

Tomer Weingarten: You know, the Linux operating system, we're not touching the Kernel at all, and even on windows, we minimize what we do. So even when you download updates, they actually live in a different part of the system, and obviously, moving away from the Kernel is incredibly beneficial to systems stability, in the kernel every small update, every small adjustment can result, every small mistake results in a blue screen or instability. That's why most vendors try to minimize what they do at the kernel level, and I think that's exactly what SentinelOne does, to the point once again in other operating systems, we're not even touching the Kernel. So if you kind of think about what happened here, both in terms of this testing methodology, the deployment cadence, customer control over deployment, all of those for us has been, you know, our day to day for the past 10 years. We're not starting now with the new deployment process, and I think that's good customers, you know, appreciate that. You know, there's there's a definite question here on whether, you know, not testing anything.

Speaker Change: Thank you for your time.

Tomer Weingarten: Weingarten, Tomer Weingarten.

Speaker Change: The next question is from the line of Brian XX with JP Morgan, you may proceed.

Tomer Weingarten: We have truly moved away from that. We're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are sort of very much leaning into these, you know, IOC's signature type updates. And I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, from the content center.

Brian XX: Thank you, and I thank you for taking the question. Tomer, I want to circle back on, you call it out and your shareholder letter and prepare remarks.

Tomer Weingarten: So if you kind of think about what happened here, both in terms of this testing methodology, the deployment cadence, customer control over deployment, all of those for us has been, you know, our day to day for the past 10 years. We're not starting now with the new deployment process, and I think that good customers, you know, appreciate that. You know, there's there's a definite question here on whether, you know, not testing anything, we need deployed Kernel elsewhere is even meeting the minimum of standard care. I think that, you know, it's so shocking to see the level of deployment with no testing whatsoever, and I think that customers are first trying to assert what level of control they have over deployment. And once again, with Sentinel One, it's full control, we never deploy without their knowledge, we never deploy fleet wide, and that is, again, a stark difference from what you've seen, you know, from CrowdStrike. So these are the two, I think immediate architectural, you know, differences that you have between the different products. Then you go into, you know, our core innovation and our patented behavioral AI, which obviously has been designed to deal with attacks in real time on the end point itself with no updates. That's, you know, kind of the claim to fame that next generation vendors had over the antivirus vendors. You're not going to need all these updates because we're building AI into these systems, to be able to detect generically, regardless of signature as a very specific indicators. We have truly moved away from that, we're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are sort of very much leaning into these, you know, IOC's signature type updates, and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work, that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, front and center. I think another thing that's important to mention is that, this doesn't really even appear to be a one time thing or sold issue, I mean, this is a pretty significant architectural difference here, you know. Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now. Thank you for the detail.

Brian XX: The interest in your platform, as you just mentioned, has this deeply risen. Could you provide a little more color around conversations you're having with customers? How you might see the reason outage impacting your pipeline growth if you can quantify it at all?

Speaker Change: Any impact on pricing when rates and are you counting on daily gauge from crowd strike in order to hit target growth numbers that you implied in your guidance? Just trying to get it done to impact and conservatism there. Thank you.

Tomer Weingarten: I think another thing that's important to mention is that this doesn't really even appear to be a one time thing or sold issue. I mean, this is a pretty significant architectural difference here, you know, just last week in Europe, there were new reports of South and causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent. And I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that sent a one to four years now. Thank you for the detail.

Speaker Change: For Q2, obviously, the vast majority of what you see is just kind of the natural momentum of the business, you know, double digit over achievement on the netmere of our side of the house.

Tomer Weingarten: I think that, you know, it's so shocking to see the level of deployment with no testing whatsoever, and I think that customers are first trying to assert what level of control they have over deployment. And once again, with Sentinel One, it's full control, we never deploy without their knowledge, we never deploy fleet wide, and that is, again, a stark difference from what you've seen, you know, from CrowdStrike. So these are the two, I think immediate architectural, you know, differences that you have between the different products. Then you go into, you know, our core innovation and our patented behavioral AI, which obviously has been designed to deal with attacks in real time on the end point itself with no updates. That's, you know, kind of the claim to fame that next generation vendors had over the antivirus vendors. You're not going to need all these updates because we're building AI into these systems, to be able to detect generically, regardless of signature as a very specific indicators. We have truly moved away from that, we're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are sort of very much leaning into these, you know, IOC's signature type updates, and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work, that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, front and center. I think another thing that's important to mention is that, this doesn't really even appear to be a one time thing or sold issue, I mean, this is a pretty significant architectural difference here, you know. Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now.

Speaker Change: Speaks for itself and that to me, you know, I would call it organic momentum. I think our pipeline generally, you know, looking forward is definitely getting stronger. If you think about the partner ecosystem, I think it's not far fetched to say that a lot of the customers...

Tomer Weingarten: And once again, with Sentinel One, it's full control, we never deploy without their knowledge, we never deploy fleet wide, and that is, again, a stark difference from what you've seen, you know, from CrowdStrike. So these are the two, I think immediate architectural, you know, differences that you have between the different products. Then you go into, you know, our core innovation and our patented behavioral AI, which obviously has been designed to deal with attacks in real time on the end point itself with no updates. That's, you know, kind of the claim to fame that next generation vendors had over the antivirus vendors. You're not going to need all these updates because we're building AI into these systems, to be able to detect generically, regardless of signature as a very specific indicators. We have truly moved away from that, we're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are sort of very much leaning into these, you know, IOC's signature type updates, and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work, that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, front and center. I think another thing that's important to mention is that, this doesn't really even appear to be a one time thing or sold issue, I mean, this is a pretty significant architectural difference here, you know. Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now.

Speaker Change: are revisiting their expansion conversations that did very, very least.

Speaker Change: I think on top of that we've already seen customers choosing to move away, some of them move away already, to centre one, some of them are in the process, some of them will take time to assert, but I think everybody is considering their next steps and obviously as you can imagine that both will, to centre one, with that I would also be mindful that sales cycles take 9 to 12 months, nobody wants to rip off something immediately, some folks do, but that's not the majority.

Tomer Weingarten: Then you go into, you know, our core innovation and our patented behavioral AI, which obviously has been designed to deal with attacks in real time on the end point itself with no updates. That's, you know, kind of the claim to fame that next generation vendors had over the antivirus vendors. You're not going to need all these updates because we're building AI into these systems, to be able to detect generically, regardless of signature as a very specific indicators. We have truly moved away from that, we're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are sort of very much leaning into these, you know, IOC's signature type updates, and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work, that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, front and center. I think another thing that's important to mention is that, this doesn't really even appear to be a one time thing or sold issue, I mean, this is a pretty significant architectural difference here, you know. Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now.

Brian Essex: The next question is from the line of Brian Essex with JP Morgan, you may proceed. Great, thank you, and thank you for taking the question. Tom, I want to circle back on, you know, you called out in your shareholder letter and prepared remarks about, you know, the interest in your platform. As you just mentioned, just as distinctly risen, you provide a little more color around conversations you're having with customers, how you might see the, you know, the recent outage impacting your pipeline growth, if you can quantify it at all.

Tomer Weingarten: That's, you know, kind of the claim to fame that next generation vendors had over the antivirus vendors. You're not going to need all these updates because we're building AI into these systems, to be able to detect generically, regardless of signature as a very specific indicators. We have truly moved away from that, we're augmenting that with the cloud, but it doesn't require the same level of updates. Other vendors are sort of very much leaning into these, you know, IOC's signature type updates, and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work, that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, front and center. I think another thing that's important to mention is that, this doesn't really even appear to be a one time thing or sold issue, I mean, this is a pretty significant architectural difference here, you know. Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now.

Speaker Change: I think for the rest of the customer base.

Speaker Change: We're going to play out over time. I think people are looking at us, so it's the number one alternative. People are looking to diversify risk and not.

Brian Essex: Any impact on pricing, win rates, and are you counting on deal leakage from CrowdStrike in order to hit like target growth numbers that you've, you know, implied in your guidance, just trying to get a sense of impact and conservatism there. Thank you. For Q2, obviously, the vast majority of what you see is just kind of the natural momentum of the business, you know, double digit overachievement on the net near our side of the house speaks for itself, and that to me, you know, I would, I would call it organic momentum.

Speaker Change: is really concentrating more in more capabilities with one vendor. So, as the partner ecosystem kind of spans,

Tomer Weingarten: Other vendors are sort of very much leaning into these, you know, IOC's signature type updates, and I think that's kind of what you're seeing in terms of the difference. I think these are very, very nuanced elements of how these products work, that have not been in the spotlight, nor were they clear to customers. And I think what happened, obviously, puts this, you know, front and center. I think another thing that's important to mention is that, this doesn't really even appear to be a one time thing or sold issue, I mean, this is a pretty significant architectural difference here, you know. Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now.

Speaker Change: You know, those expansion opportunities, I think they are now looking to other sources to cover the lost expansion opportunities with other vendors and they're coming to us and it comes to us in a good time where we've been investing significantly in enablement of our workforce and our partner ecosystem. So, you know, we're now taking our entire platform to market as you've seen with the adoption of purple AI. You know, such tremendous traction is just...

Brian Essex: I think our pipeline generally, you know, looking forward is definitely getting stronger. If you think about the partner ecosystem, I think it's not far-fetched to say that a lot of the customers are revisiting their expansion conversations that they're very, very least. I think on top of that, we've already seen customers choosing to move away, some of them moved away already to center one, some of them were in the process, some of them will take time to assert, but I think everybody's considering their next steps.

Speaker Change: and other evidence that we are able to now expand dramatically with our emerging products.

Tomer Weingarten: Just last week in Europe, there were new reports of [inaudible] causing more cloud service issues, performance problems, lagging boot times. So that decision to be very cloud dependent, and I think for years, people have painted as an advantage, I think is kind of turning out to be, you know, a pretty, pretty, pretty, I would say drawback of that same approach versus a more embedded and augmented approach that SentinelOne took four years now.

Speaker Change: So not only were seeing, I think, four momentum in the endpoint space, we're also seeing the adjacencies now being revisited and set the one being kind of a number one vendor for consideration across all these different opportunities.

Speaker Change: The next question is from the line of Hamza Futterwala with Morgan Stanley. You may proceed.

Brian Essex: And obviously, as you can imagine, that boats will have two center one, with that, I would also, you know, be mindful that cell cycles take, you know, nine to twelve months. Nobody wants to rip off something immediately. Some folks do, but that's not the majority. I think for the rest of the customer base, you know, just decisions are going to, they're going to play out over time. I think people are looking at us, obviously, the number one alternative.

Gabriela Borges: Thank you for the detail.

Hamza Futterwala: Great, good evening. Thank you for taking my question. Tomer, thanks a lot for all the commentary on the increased pipeline of the new progress rates with purple and all the other things that you mentioned. I'm curious, but given this opportunity in front of you seems like...

Operator: The next question is from the line of Brian Essex with JP Morgan, you may proceed.

Brian Essex: Great, thank you, and thank you for taking the question. Tomer, I want to circle back on, you know, you called out in your shareholder letter and prepared remarks about, you know, the interest in your platform, as you just mentioned, just as distinctly risen. Can you provide a little more color around conversations you're having with customers? How you might see the, you know, the recent outage impacting your pipeline growth, if you can quantify it at all. Any impact on pricing, win rates, and are you counting on deal leakage from CrowdStrike in order to hit like target growth numbers that you've, you know, implied in your guidance, just trying to get a sense of impact and conservatism there. Thank you.

Speaker Change: A lot more is coming down on one's way. From a go-to-market execution standpoint, you feel like the go-to-market engine has significantly improved, especially in light of the CRO transition that I want to have recently. Thank you.

Any impact on pricing, win rates, and are you counting on deal leakage from CrowdStrike in order to hit like target growth numbers that you've, you know, implied in your guidance, just trying to get a sense of impact and conservatism there.

Speaker Change: I do, absolutely, I think we've seen good evidence of that in Q2

Brian Essex: People are looking to diversify risk and not really concentrate more and more capabilities with one vendor. So as the partner ecosystem kind of spends, you know, those expansion opportunities, I think they are now looking to other sources to cover the lost expansion opportunities with other vendors. And they're coming to us, and it comes to us in a good time, where we've been investing significantly in enablement of our workforce and our partner ecosystem.

Speaker Change: and I think we're seeing more and more of that and look, I mean when we look at the remainder of this year, there's a couple things that are in play, I mean obviously we're looking for, you know, just overall better trends in the second half of the year. I think we're also seeing even a departure from our seasonality between Q2 and Q3 and more sequential growth in Q3. And everything I'm saying now is really, you know, regardless of this outfit, regardless of the downstream effect, this is just our own business.

Thank you. For Q2, obviously, the vast majority of what you see is just kind of the natural momentum of the business, you know, double digit overachievement on the net near our side of the house speaks for itself, and that to me, you know, I would, I would call it organic momentum.

Thank you.

Tomer Weingarten: For Q2, obviously, the vast majority of what you see is just kind of the natural momentum of the business, you know, double digit overachievement on the [inaudible] side of the house speaks for itself. And that to me, you know, I would, I would call it organic momentum, I think our pipeline generally, you know, looking forward is definitely getting stronger. If you think about the partner ecosystem, I think it's not far-fetched to say that a lot of the customers are revisiting their expansion conversations that they're very, very least. I think on top of that, we've already seen customers choosing to move away, some of them moved away already to Sentinel one, some of them were in the process, some of them will take time to assert, but I think everybody's considering their next steps. And obviously, as you can imagine, that bodes well to Sentinel one, with that, I would also, you know, be mindful that cell cycles take, you know, nine to twelve months. Nobody wants to rip off something immediately, some folks do, but that's not the majority, I think for the rest of the customer base, you know, just decisions are going to, they're going to play out over time. I think people are looking at us, obviously, the number one alternative, people are looking to diversify risk, and not really concentrate more and more capabilities with one vendor. So as the partner ecosystem kind of spends, you know, those expansion opportunities, I think they are now looking to other sources to cover the lost expansion opportunities with other vendors. And they're coming to us, and it comes to us in a good time, where we've been investing significantly in enablement of our workforce and our partner ecosystem. So, you know, we're now taking our entire platform to market, as you've seen with the adoption of Purple AI, you know, such tremendous traction is just, you know, another evidence that we are able to now expend dramatically with our emerging products. So not only we're seeing I think core momentum in the end point space, we're also seeing the adjacencies now being revisited in SentinelOne being kind of a number one vendor for consideration across all these different opportunities.

Brian Essex: So, you know, we're now taking our entire platform to market. As you've seen with the adoption of Purple AI, you know, such tremendous traction is just... You know, another evidence that we are able to now expend dramatically with our emerging products.

Speaker Change: are really improving our go-to-market cadence.

Speaker Change: So, as I mentioned, I think this, you know, in some way has come in a relatively good time for us, we've been improving our execution, I think ourselves for us.

Tomer Weingarten: So not only we're seeing I think for momentum in the end point space, we're also seeing the adjacencies now being revisited in SentinelOne being kind of a number one vendor for consideration across all these different opportunities.

Tomer Weingarten: I think on top of that, we've already seen customers choosing to move away, some of them moved away already to Sentinel one, some of them were in the process, some of them will take time to assert, but I think everybody's considering their next steps. And obviously, as you can imagine, that bodes well to Sentinel one, with that, I would also, you know, be mindful that cell cycles take, you know, nine to twelve months. Nobody wants to rip off something immediately, some folks do, but that's not the majority, I think for the rest of the customer base, you know, just decisions are going to, they're going to play out over time. I think people are looking at us, obviously, the number one alternative, people are looking to diversify risk, and not really concentrate more and more capabilities with one vendor. So as the partner ecosystem kind of spends, you know, those expansion opportunities, I think they are now looking to other sources to cover the lost expansion opportunities with other vendors. And they're coming to us, and it comes to us in a good time, where we've been investing significantly in enablement of our workforce and our partner ecosystem. So, you know, we're now taking our entire platform to market, as you've seen with the adoption of Purple AI, you know, such tremendous traction is just, you know, another evidence that we are able to now expend dramatically with our emerging products. So not only we're seeing I think core momentum in the end point space, we're also seeing the adjacencies now being revisited in SentinelOne being kind of a number one vendor for consideration across all these different opportunities.

Speaker Change: DNA has been, I think, amplified. We brought in new leaders. We're seeing better cadence. We're seeing better pipeline retention, better conversion rates, better wind rates.

Tomer Weingarten: The next question is from the line of Hamza Fodderwala with Morgan Stanley. You may proceed. Great. Good evening. Thank you for taking my question. Tomer, thanks a lot for all the commentary on the increased pipeline of the new product hatch rates with purple and a lot of the other things that you mentioned. I'm curious, given this opportunity in front of you, it seems like a lot more is coming, SentinelOne's way from a go-to-market execution standpoint.

Speaker Change: All of that is trending positively, again, regardless of what happened. So, all in all, you know, we feel, we feel encouraged, we're trying to take a responsible approach for the remainder of the year. These are very early days, it's so very, very dynamic. I don't know that we can fully quantify what we're seeing now. And obviously, no things can change here and there. We still want to make sure that we're giving an accurate projection, you know, for you all. And that's why, you know, we're kind of sticking to the envelope that we know about, and that's kind of what guide us forward.

Tomer Weingarten: You feel like the go-to-market engine has significantly improved, especially in light of the CRO transition that SentinelOne had recently. Thank you. I do. Absolutely. I think we've seen a good evidence of that in Q2 and I think we're seeing more and more of that. And look, I mean, when we look at the remainder of this year, there's a couple things that are in play. I mean, obviously we're looking for, you know, just overall better trends in the second half of the year.

Tomer Weingarten: I think people are looking at us, obviously, the number one alternative, people are looking to diversify risk, and not really concentrate more and more capabilities with one vendor. So as the partner ecosystem kind of spends, you know, those expansion opportunities, I think they are now looking to other sources to cover the lost expansion opportunities with other vendors. And they're coming to us, and it comes to us in a good time, where we've been investing significantly in enablement of our workforce and our partner ecosystem. So, you know, we're now taking our entire platform to market, as you've seen with the adoption of Purple AI, you know, such tremendous traction is just, you know, another evidence that we are able to now expend dramatically with our emerging products. So not only we're seeing I think core momentum in the end point space, we're also seeing the adjacencies now being revisited in SentinelOne being kind of a number one vendor for consideration across all these different opportunities.

Speaker Change: The next question is from the line of Zach Head Collier with Barclays. You may proceed.

Speaker Change: Great, guys. Thanks for taking my question here.

Speaker Change: We will change it up a little bit and David, I've got a question for you.

Speaker Change: Wearing helpful comments on sort of directionally how to think about net new ARR here in the second half.

Tomer Weingarten: I think we're also seeing even a departure from our seasonality between Q2 and Q3 and more sequential growth into Q3. And everything I'm saying now is really, you know, regardless of this outage, regardless of the downstream effect, this is just our own business, you know, really improving our go-to-market cadence. So, as I mentioned, I think this, you know, in some way has come in a relatively good time for us. We've been improving our execution.

Speaker Change: But just for everybody's benefit, I was wondering if you wanted to put a finder point on that new A-Rar.

Tomer Weingarten: So, you know, we're now taking our entire platform to market, as you've seen with the adoption of Purple AI, you know, such tremendous traction is just, you know, another evidence that we are able to now expend dramatically with our emerging products. So not only we're seeing I think core momentum in the end point space, we're also seeing the adjacencies now being revisited in SentinelOne being kind of a number one vendor for consideration across all these different opportunities.

Speaker Change: You know, how should we be thinking about modeling that new ARR for this year? And as it's fair to say that based on the commentary so far, it's fair to say that that doesn't include too much benefit from the crowd strikeout edge.

Speaker Change: That's a great question, so thank you. When I think about the ARR, I think we successfully stabilized net new ARR growth in Q2.

Tomer Weingarten: I think our Salesforce DNA has been, I think, amplified. We brought in new leaders. We're seeing better cadence. We're seeing better pipeline retention, better conversion rates, better wind rates. All of that is trending positively again, regardless of what happened. So, all in all, you know, we feel encouraged. We're trying to take a responsible approach for the remainder of the year. These are very early days, so very, very dynamic. I don't know that we can fully quantify what we're seeing now.

Speaker Change: We also formed our expectations by double digits on the back that Tomer said of improved execution, strong underlying demand, and really our platform solutions, which have continued to have a positive response in the market.

Operator: The next question is from the line of Hamza Fodderwala with Morgan Stanley. You may proceed.

Hamza Fodderwala: Great, good evening, thank you for taking my question. Tomer, thanks a lot for all the commentary on the increased pipeline of the new product hatch rates with Purple, and a lot of the other things that you mentioned. I'm curious, given this opportunity in front of you, it seems like a lot more is coming in SentinelOne's way. From a go-to-market execution standpoint, do you feel like the go-to-market engine has significantly improved? Especially in light of the CRO transition that SentinelOne had recently. Thank you. I do. Absolutely. I think we've seen a good evidence of that in Q2 and I think we're seeing more and more of that. And look, I mean, when we look at the remainder of this year, there's a couple things that are in play. I mean, obviously we're looking for, you know, just overall better trends in the second half of the year.

Speaker Change: We said last quarter that the H2 Road Trends were poised to improve and that was before any fiber event that happened with CrowdStrike.

Speaker Change: You know we've been driving better outcomes.

Speaker Change: We were already expecting better than typical Q2 to Q2 to Q3 growth, which we've, you know, guided accordingly. You know, we've had better execution, we've had better pipeline retention, and I think what's probably most important on this is, you know, if you just think about it, kind of how our revenue increase has gone up as well. You know, we've moved to the higher end of our range, and I think that shows the positive growth we're expecting in the second half. That all being said, our outlook, you know, is...

Tomer Weingarten: And obviously, you know, things can change here and there. We still want to make sure that we're giving an accurate projection, you know, for you all. And that's why, you know, we're kind of sticking to the envelope that we know about. And that's kind of what guides us forward.

Tomer Weingarten: I do, absolutely. I think we've seen a good evidence of that in Q2, and I think we're seeing more and more of that. And look, I mean, when we look at the remainder of this year, there's a couple things that are in play, I mean, obviously we're looking for, you know, just overall better trends in the second half of the year. I think we're also seeing even a departure from our seasonality between Q2 and Q3, and more sequential growth into Q3, and everything I'm saying now is really, you know, regardless of this outage, regardless of the downstream effect, this is just our own business, you know, really improving our go-to-market cadence. So, as I mentioned, I think this, you know, in some way has come in a relatively good time for us, we've been improving our execution. I think our Salesforce DNA has been, I think, amplified, we brought in new leaders, we're seeing better cadence, we're seeing better pipeline retention, better conversion rates, better wind rates. All of that is trending positively again, regardless of what happened. So, all in all, you know, we feel encouraged, we're trying to take a responsible approach for the remainder of the year, these are very early days, still very, very dynamic. I don't know that we can fully quantify what we're seeing now, and obviously, you know, things can change here and there, we still want to make sure that we're giving an accurate projection, you know, for you all. And that's why, you know, we're kind of sticking to the envelope that we know about, and that's kind of what guides us forward.

Hamza Fodderwala: The next question is from the line of Saket Kalia with Barclays. You may proceed. Okay. Great, guys. Thanks for taking my question here. Maybe we'll change it up a little bit.

Tomer Weingarten: Weingarten, Tomer Weingarten, Tomer

David Bernhardt: And David, I've got a question for you. Very helpful commentary just on sort of directionally how to think about net new ARR here in the second half. But just for everybody's benefit, I was wondering if you wanted to put a finer point on net new ARR. You know, how should we be thinking about modeling that new ARR for this year? And is it fair to say that based on the commentary so far, is it fair to say that that doesn't include too much benefit from the crowd strike out there?

Tomer Weingarten: The next question is from the line of Schrennick Kofari with Beard, you may proceed.

Schrennick Kofari: Thanks for taking my question.

Schrennick Kofari: Tomer, you hired the partnership with FISA, which tellers, oral government, white, private defense, and that seems to be very meaningful.

Speaker Change: The platform capabilities firstly align with the requirements of the agencies and can you allow it on the significance of the partnership and the potential implications that would have on the growth opportunity in the federal market, overall we can provide some more color things.

Dave Bernhardt: Yeah, that's a great question, Saket, so thank you. When I think about the ARR, I think we successfully stabilized net new ARR growth in Q2, which is what we said we would do last quarter. We outperformed our expectations by double digits on the back, as Tomer said, have improved execution, strong underlying demand, and really in our platform solutions, which have continued to have a positive response in the market. Like we said last quarter, the H2 growth trends were poised to improve, and that was before any cyber events that happened with CrowdStrike. We've been driving better outcomes, we were already expecting better than typical Q2 to- Q2 to Q3 growth, which we've guided accordingly. We've had better execution, we've had better pipeline retention, and I think what's probably most important on this is if you just think about it, how our revenue increases gone up as well. We've moved to the higher end of our range, and I think that shows the positive growth we're expecting in the second half. That all being said, our outlook is, there are benefits that may come from customers coming to us, from CrowdStrike, or from the events that have happened, but our guidance hasn't depended on it.

Speaker Change: Of course.

Speaker Change: These types of deals, and I would say in the same vein, the security, you know, southern shore coalition that we build.

Speaker Change: These are long-term, you know, very wide reaching partnerships that we put out there. They unlocked themselves gradually in over years.

Speaker Change: and St. Goes for, you know, this is a partnership.

Speaker Change: The ability to deliver, you know, and secure private clouds, private environment, on-premise environments is quite unique. For Sentinel-1, I think that's why we also have this great fit with what, you know, the federal government actually needs. When you think about our data solutions, you know, these are just massive cost savers of 40s agencies, but I would encourage everybody to think about these partnerships. It's things that unlock themselves over time and gradually grow. There's no, you know, one shot to take everything. This is something, again, that spends millions and millions of endpoints, and we unlock it over time. The way we look at it.

Operator: The next question is from the line of Saket Kalia with Barclays. You may proceed.

Saket Kalia: Okay, great, guys, thanks for taking my question here. Maybe we'll change it up a little bit, and David, I've got a question for you. Very helpful commentary just on sort of directionally, how to think about net new ARR here in the second half, but just for everybody's benefit, I was wondering if you wanted to put a finer point on net new ARR. You know, how should we be thinking about modeling that new ARR for this year? And is it fair to say that based on the commentary so far, is it fair to say that that doesn't include too much benefit from the CrowdStrike outage?

David Bernhardt: We've been driving better outcomes, we were already expecting better than typical Q2 to Q2 to Q3 growth, which we've guided accordingly. We've had better execution, we've had better pipeline retention, and I think what's probably most important on this is if you just think about it, how our revenue increases gone up as well. We've moved to the higher end of our range, and I think that shows the positive growth we're expecting in the second half. That all being said, our outlook is, there are benefits that may come from customers coming to us, from CrowdStrike, or from the events that have happened, but our guidance hasn't depended on it.

Speaker Change: is just the ability to really look down market here over years.

Speaker Change: and you know that goes towards our partnership with Google transitioning away from you know being complete solution that they've been working with and into an exgeneration solution with Sentinel 1 in St. Gozer. R.I.R. partners.

Speaker Change: The cyber insurers, anybody from A on to Chab, all of them are providing their customers' de-option to go with set-on-one and especially better premiums and better risk posture. So all of these are strategic partnerships that will unlock more market share and success for us.

Saket Kalia: The next question is from the line of Shrenik Kofari with Baird. You may proceed. Thanks for taking my question. Tomer, you hired the partnership with FISA, which was a government-wide fiber defense, and that seems to be pretty meaningful.

Speaker Change: in the years to come.

Speaker Change: Next question comes from the line of John Diffucci with Guggenheim. He may proceed.

Tomer Weingarten: How does the platform capabilities firstly align with the requirements of the agencies, and can you allow it on the significance of the partnership and potential implications that would have on the growth opportunity in the federal market, overall, which can provide some more color. Of course. These types of deals, and I would say in the same vein, the security, southern shore coalition that we build, these are long-term, very wide-reaching partnerships that we put out there.

John Diffucci: Thank you.

John Diffucci: Tomer, you were already in process to change, go to market, you have a new CRO. I guess any thoughts on redirecting that due to the recent issues with the crowds strike out, and on a related point, I think last quarter you said you weren't in a chase to invest in marketing, but given foot looks like opportunity for you, has that approach changed due to these events?

Tomer Weingarten: They unlock themselves gradually in over years, and same goes for the CISO partnerships. The ability to deliver and secure private clouds, private environment, on-premise environments is quite unique for Sentinel-1. I think that's why we also have this great fit with what the federal government actually needs. When you think about our data solutions, these are just massive cost savers for these agencies, but I would encourage everybody to think about these partnerships as things that unlock themselves over time and gradually grow.

Speaker Change: We've been very aligned.

Speaker Change: Well, after a net new business generation, which coincides really well with what's happened.

Operator: The next question is from the line of Shrenik Kothari with Baird. You may proceed.

Speaker Change: So the majority of what we do has always been focused on

Speaker Change: You know, acquiring new customers?

Shrenik Kothari: Thanks for taking my question. So Tomer, you highlighted the partnership with CISA, which [inaudible] government-wide fiber defense, and that seems to be pretty meaningful. So how does the platform capabilities firstly align with the requirements of the agencies? And can you allow it on the significance of the partnership and potential implications that would have on the growth opportunity in the federal market, overall? Can provide some more color?

Speaker Change: and this is not very new dissimilar from that. We are getting more honed in on our channel ecosystem. There's no question that this is where, you know, we've been very, very strong. We've had a very wide reaching partner ecosystem and now we're there for them as they engage some of these customers that are rethinking their security decisions. So I think if anything, this is just more of an salarine to a strategy that we already had in the past.

How does the platform capabilities firstly align with the requirements of the agencies, and can you allow it on the significance of the partnership and potential implications that would have on the growth opportunity in the federal market, overall, which can provide some more color.

Tomer Weingarten: There's no one shot to take everything. This is something again that spends millions and millions of endpoints, and we unlock it over time. The way we look at it is just the ability to really lock down market share over years, and that goes towards our partnership with Google, transitioning away from the incumbent solution that they've been working with, and into the next generation solution with Sentinel-1, and same goes with our other IR partners, the cyber insurers, and anybody from Aeon to Chubb, all of them are providing their customers the option to go with Sentinel-1, and especially better premiums and better risk posture.

Speaker Change: But now we got the discipline to go after it, you know we got the systems, we got the processes and that is obviously incredibly helpful and very timely.

Tomer Weingarten: Of course. These types of deals, and I would say in the same vein, the security, southern shore coalition that we build, these are long-term, very wide-reaching partnerships that we put out there. They unlock themselves gradually in over years, and same goes for the CISA partnerships. The ability to deliver and secure private clouds, private environment, on-premise environments is quite unique for SentinelOne, I think that's why we also have this great fit with what the federal government actually needs. When you think about our data solutions, these are just massive cost savers for these agencies, but I would encourage everybody to think about these partnerships as things that unlock themselves over time and gradually grow. There's no one shot to take everything, this is something, again, that spends millions and millions of endpoints, and we unlock it over time. The way we look at it is just the ability to really lock down market share over years, and that goes towards our partnership with Google, transitioning away from the incumbent solution that they've been working with. And into the next generation solution with Sentinel-1, and same goes with our other IR partners, the cyber insurers, and anybody from Aeon to Chubb, all of them are providing their customers the option to go with SentinelOne. And especially better premiums and better risk posture, so, all in all, these are strategic partnerships that will unlock more market share and success for us in the years to come.

Speaker Change: The next question is from the line of Rudy Kessinger, with the A. Davidson you may proceed.

Rudy Kessinger: Thanks for taking my question. I guess Tomer in the prepared remarks, I think you mentioned, you had already maybe displaced a few prostrate customers in the outage and in some different kind of comments throughout the call here.

Tomer Weingarten: So, all in all, these are strategic partnerships that will unlock more market share and fix us for us in the years to come.

Speaker Change: He said, he said, most of the time, I just take nine, twelve months, Dave, you said, you know, the second half out look really independent of any of those from Christchurch. So I guess I'm just trying to get

John DiFucci: Next question comes from the line of John DiFucci with Guggenheim. You may proceed. Thank you. Tomer, you were already in process to change, go to market, you have a new CRO. I guess any thoughts on redirecting that due to the recent issues with the crowd strike outage. And on a related point, I think last quarter, you said you weren't in a chase to invest in marketing. But given what looks like opportunity for you, has that approach changed due to these events?

Speaker Change: Simurtersack, it kind of, well somebody else who has questions, that's not good, but you really want to buy over the last five or six weeks ahead.

Speaker Change: Can you directly attribute any material piece of your new business to customers who exact crowds right out is would not have signed contracts with you. I'm just trying to get a better sense of what's been the impact of date and your expectations for a potential positive impact for us this year.

Tomer Weingarten: Not so much. We've been very aligned both after a net new business generation, which coincides really well with what happened. So the majority of what we do has always been focused on acquiring new customers, and this is not very [inaudible] from that. We are getting more honed in on our channel ecosystem, there is no question that this is where, we've been very, very strong, we've had a very wide reaching partner ecosystem. And now we're there for them, as they engage some of these customers that are rethinking their security decisions, so I think if anything, this is just more of an accelerant to a strategy that we already had in the past. But now we got the discipline to go after it, you know, we got the systems, we got the processes, and that is obviously incredibly helpful and very timely.

Speaker Change: Look, I'm not going to delve into how material and not material it is. We still have quite a lot of book of business, regardless.

Speaker Change: That said, there have been customers, that have been switching away, there have been customers that have decided and this which to us I hope will happen quite soon so it's all really working progress, you know, if you may but these are, you know, more key customers sometimes.

John DiFucci: And now we're there for them as they engage some of these customers that are rethinking their security decisions. So I think if anything, this is just more of an accelerant to a strategy that we already had in the past. But now we got the discipline to go after it. You know, we got the systems. We got the processes. And that is obviously incredibly helpful and very timely.

Speaker Change: What the level of impact that would have and in what exact timeline I mean I'm not sure I can tell you right now You know customers need to test customer need to ensure interoperability customer need to come up with deployment plans If anything we've learned from this that you just don't want to move too fast

Operator: Next question comes from the line of John DiFucci with Guggenheim. You may proceed.

John Stephen DiFucci: Thank you. Tomer, you are already in process to change, go to market, you have a new CRO. I guess, any thoughts on redirecting that due to the recent issues with the crowd strike outage? And on a related point, I think last quarter, you said you weren't in a chase to invest in marketing, but given what looks like opportunity for you, has that approach changed due to these events?

Speaker Change: Especially not with such important pieces of software for critical infrastructure. So all in all, I think I'm very encouraged by the conversations. We're not pushing towards any timeline. Once again, we work at the pace of customers, we're there to support them, we're not there to ambulance chase. You know, somebody shows up at my hospital and I'm darn well going to let them in. But we're doing this at the pace of customers.

Rudy Kessinger: The next question is from the line of Rudy Kessinger with DA Davidson. You may proceed. Hey, thanks for taking my question. I guess, you know, Tomer, in the prepared remarks, I think you mentioned you had already maybe displaced a few crowd strike customers since the outage. And then some different kind of comments throughout the call here. You said, look, say, I was just to take 912 months, Dave. You said, you know, the second half outlook really is independent on any of those from crowd strike. So I guess I'm just trying to get similar to socket kind of kind of a, well, somebody else who has questions, not socket.

Speaker Change: The next question is from the line of Peter and we with Bernstein, you may proceed.

Peter: Thank you. You know, I think one of the things you've been emphasizing in several quarters has been kind of an increasing proportion of growth coming from new customers, which is obviously really exciting for potential of future growth. But can you help us, I guess, maybe on two dimensions, one is just...

Tomer Weingarten: But could you really quantify, or the last five or six weeks have, can you directly attribute any material piece of your new business to customers who exit that crowd strike outage would not have signed contracts with you. I'm just trying to get a better sense of what's been the impact of date in your expectations for a potential positive impact the rest of this year. Yeah, look, I'm not going to delve into how material or not material it is.

Tomer Weingarten: And now we're there for them, as they engage some of these customers that are rethinking their security decisions, so I think if anything, this is just more of an accelerant to a strategy that we already had in the past. But now we got the discipline to go after it, you know, we got the systems, we got the processes, and that is obviously incredibly helpful and very timely.

Speaker Change: Give us some comfort that that's not just because of the continued acceleration and growth of existing customers.

Speaker Change: So, you know, where is that kind of dreamling cold month in our city now and that kind of line of sight to potential expansion in the second half and guess the other side is

Tomer Weingarten: You know, we still have quite a lot of book of business, regardless. That said, there have been customers that have been switching away. There have been customers that have decided and the switch to us. I hope to happen quite soon. So it's all really work in progress, you know, if you may. But these are, you know, marquee customers sometimes. So what the level of impact that would have and in what exact timeline.

Speaker Change: In those new customers, is that coming from like an increasing number of incremental lands? Is that coming from expansion on the sides of those new customers? Maybe give us some color on the profile that's driving that really nice track record.

Operator: The next question is from the line of Rudy Kessinger with DA Davidson. You may proceed.

Rudy Grayson Kessinger: Hey, thanks for taking my question. I guess, you know, Tomer, in the prepared remarks, I think you mentioned you had already maybe displaced a few CrowdStrike customers since the outage. And then some different kind of comments throughout the call here, you said, look, [inaudible] to take 9 to 12 months, Dave. You said, you know, the second half outlook really is independent on any of those from CrowdStrike. So I guess I'm just trying to get similar to Saket, kind of kind of a, well, somebody else who has questions, not Saket. But could you really quantify, for the last five or six weeks have, can you directly attribute any material piece of your new business to customers who exit that crowd strike outage would not have signed contracts with you? I'm just trying to get a better sense of what's been the impact of date. in your expectations for a potential positive impact the rest of this year.

Speaker Change: 2, um...

Speaker Change: Look, Expansion, the Expansion Emotion Processor has been healthy since I can't remember and it remains healthy.

Speaker Change: I think we continue and grow.

Tomer Weingarten: I mean, I'm not sure I can tell you right now, you know, customers need to test customer need to ensure interoperability. Customers need to come up with deployment plans. If anything, we've learned from this is that you just don't want to move too fast. Especially not, you know, with, with such, you know, important pieces of software for critical infrastructure. So all in all, I think I'm very encouraged by the conversations. We're not pushing towards any timeline. Once again, we work at the pace of customers. We're there to support them. We're not there to ambulance chase.

Speaker Change: are business with existing customers, our customers are incredibly happy, you know, just jump into Gartner peer reviews and read what they say, so to me that's an opportunity that's there, it's within our control, we're unlocking it at the pace that we determine, but as we mentioned, you know, the focus is on new accounts.

Rudy Grayson Kessinger: So I guess I'm just trying to get similar to Saket, kind of kind of a, well, somebody else who has questions, not Saket. But could you really quantify, for the last five or six weeks have, can you directly attribute any material piece of your new business to customers who exit that crowd strike outage would not have signed contracts with you? I'm just trying to get a better sense of what's been the impact of date. in your expectations for a potential positive impact the rest of this year?

But could you really quantify, or the last five or six weeks have, can you directly attribute any material piece of your new business to customers who exit that crowd strike outage would not have signed contracts with you. I'm just trying to get a better sense of what's been the impact of date in your expectations for a potential positive impact the rest of this year.

Speaker Change: The focus is on adding more folks into our customers' state, and that's exactly what we're doing. And it comes either with new accounts on endpoints.

Speaker Change: In.

Speaker Change: You know, mind you, there's still 50% of this market for end-point protection that's up for grabs, so there's a lot of road to be head in the end-point market

Yeah, look, I'm not going to delve into how material or not material it is. You know, we still have quite a lot of book of business, regardless. That said, there have been customers that have been switching away, there have been customers that have decided and switch to us, I hope to happen quite soon. So it's all really work in progress, you know, if you may, but these are, you know, marquee customers sometimes. So what the level of impact that would have and in what exact timeline, I mean, I'm not sure I can tell you right now. You know, customers need to test, customer need to ensure interoperability, customers need to come up with deployment plans. If anything, we've learned from this is that you just don't want to move too fast, especially not, you know, with, with such, you know, important pieces of software for critical infrastructure. So all in all, I think I'm very encouraged by the conversations, we're not pushing towards any timeline. Once again, we work at the pace of customers, we're there to support them, we're not there to ambulance chase. Somebody shows up in my hospital and [inaudible] but we're doing this at the base of customers. The next question comes from the line of Peter Weed, with Bernstein, you may proceed. Thank you. You know, I think one of the things you've been emphasizing and for several quarters has been kind of the increasing proportion of growth coming from new customers, which is obviously really exciting for potential of a future growth. But can you help us, I guess maybe on, on the other side of the world? On two dimensions, one is just give us some comfort that that's not just because of the continued to celebration and growth of existing customers.

Speaker Change: But also with Netanyew Lens on Cloud in Netanyew Lens on our AI Sim product.

Tomer Weingarten: Thank you. You know, I think one of the things you've been emphasizing and for several quarters has been kind of the increasing proportion of growth coming from new customers, which is obviously really exciting for potential of a future growth. But can you help us, I guess maybe on, on the other side of the world? On two dimensions, one is just give us some comfort that that's not just because of the continued to celebration and growth of existing customers.

Speaker Change: So, all the know, you know, you see emerging, getting stronger but not our emerging business getting stronger, but not just stronger because we'd close it in up to existing customers.

Speaker Change: But also because we land net new with some of these emerging capabilities, which is by design. And this is exactly the balance that we're trying to strike. I mean, we're trying to go and, you know, expand our customer state as much as possible. Why do we continue in development that motion for cross-cell and absolutely? At the end of the day, if you have a finite set of sellers and you can decide which opportunities they go after, right now, we're deciding that the dominant part goes after new account capture.

You know, customers need to test, customer need to ensure interoperability, customers need to come up with deployment plans. If anything, we've learned from this is that you just don't want to move too fast, especially not, you know, with, with such, you know, important pieces of software for critical infrastructure. So all in all, I think I'm very encouraged by the conversations, we're not pushing towards any timeline. Once again, we work at the pace of customers, we're there to support them, we're not there to ambulance chase. Somebody shows up in my hospital and [inaudible] but we're doing this at the base of customers.

Tomer Weingarten: So, you know, where is that kind of trailer in 12 month and are sitting now and that kind of line of sight to potential expansion in the second half. I guess the other side is in those new customers. Is that coming from like an increasing number of incremental lands? Is that coming from? Expansion on the sides of those new customers, maybe give us some color on, you know, the profile that it's driving that that really nice track record.

Speaker Change #100: The next question comes from the line of Brad Zilnik with Deutsche Bank. You may proceed.

Brad Zilnik: Great, thanks so much for taking the question. Tomer, I wanted to follow up on an earlier question about architecture and specifically what if anything you're expecting of Microsoft's upcoming cyber summit on September 10th, what changes view and vision that they might make so that the industry never sees 8.5 million windows and points go down again.

Tomer Weingarten: Sure. Look, expansion, the expansion motion for us has been healthy, since I can remember, and it remains healthy, you know, consistent with last quarters, this is very much an expansionary territory. So, I think we continue to grow our business with existing customers, our customers are incredibly happy, you know, just jump into garden peer reviews and read what they say. So to me, that's an opportunity that's there, it's within our control, we're unlocking it at the pace that we determine. But as as we mentioned, you know, the focus is on new accounts, the focus is on adding more folks into our customer state, and that's exactly what we're doing. And it comes either with new accounts on endpoints, and you know, mind you, there's still 50% of this market for end point protection that's up for grabs, so there's a lot of road to be had in the end point market. But also with net new lands on cloud, and net new lands on our AICEM product. So all in all, you know, you see emerging, getting stronger, but not our emerging business getting stronger, but not just stronger because we cross sell an absolute using customers, but also because we lend net new with some of these emerging capabilities, which is by design. And this is exactly the balance that we're trying to strike, I mean, we're trying to go, and you know, expand our customer state as much as possible, while we continue and develop that motion for cross sell an absolute. At the end of the day, if you have a finite set of sellers, and you can decide which opportunities they go after, right now we're deciding that the dominant part goes after new account capture.

The next question comes from the line of Peter Weed, with Bernstein, you may proceed. Thank you. You know, I think one of the things you've been emphasizing and for several quarters has been kind of the increasing proportion of growth coming from new customers, which is obviously really exciting for potential of a future growth. But can you help us, I guess maybe on, on the other side of the world? On two dimensions, one is just give us some comfort that that's not just because of the continued to celebration and growth of existing customers.

Operator: The next question comes from the line of Peter Weed, with Bernstein, you may proceed.

Peter Weed: Thank you. You know, I think one of the things you've been emphasizing and for several quarters has been kind of the increasing proportion of growth coming from new customers, which is obviously really exciting for potential of a future growth. But can you help us, I guess maybe on two dimensions, one is just give us some comfort that that's not just because of the continued deceleration and growth of existing customers. So, you know, where is that kind of trail in 12 month and are sitting now and that kind of line of sight to potential expansion in the second half? I guess the other side is, in those new customers, is that coming from like an increasing number of incremental lands? Is that coming from expansion on the sides of those new customers? Maybe give us some color on, you know, the profile that it's driving that that really nice track record.

Speaker Change #102: and how many of those changes impact central one and perhaps you're competitive positioning. Thank you.

Speaker Change #103: It's a good question, and I think what everybody needs to try and, you know, kind of keeping the back of the mind is that the kernel discussion is not a new discussion.

Speaker Change #104: Microsoft have been trying to move away from broadband kernel access for the past 10 years, if not more. There's actually been, as far as I can recall, these three different distinct initiatives to move away from the kernel, all of them have failed.

Tomer Weingarten: But as as we mentioned, you know, the focus is on new accounts. The focus is on adding more folks into our customer state. And that's exactly what we're doing. And it comes either with new accounts on endpoints. And you know, mind you, there's still 50% of this market for end point protection that's up for grabs. So there's a lot of road to be had in the end point market. But also with net new lands on cloud and net new lands on our AICEM product.

Peter Weed: So, you know, where is that kind of trail in 12 month and are sitting now and that kind of line of sight to potential expansion in the second half? I guess the other side is, in those new customers, is that coming from like an increasing number of incremental lands? Is that coming from expansion on the sides of those new customers? Maybe give us some color on, you know, the profile that it's driving that that really nice track record.

Speaker Change #104: So, on one end, I'm encouraged that this discussion is being revisited.

Speaker Change #104: On the other hand, I think the problem is so convoluted that there is.

Speaker Change #105: The Good Degree where we find ourselves either in a multi-year transition, best case.

Speaker Change #105: Or again with something that might prove to be more complex to achieve.

Tomer Weingarten: So all in all, you know, you see emerging, getting stronger, but not our emerging business getting stronger, but not just stronger because we cross sell an absolute using customers. But also because we lend net new with some of these emerging capabilities, which is by design. And this is exactly the balance that we're trying to strike. I mean, we're trying to go and, you know, expand our customer state as much as possible while we continue and develop that motion for cross sell an absolute. At the end of the day, if you have a finite set of sellers and you can decide which opportunities they go after, right now we're deciding that the dominant part goes after new account capture.

Speaker Change #105: and will take even longer than that.

Speaker Change #105: But all in all, you know, Central One has always been an advocate of...

Speaker Change #105: The best possible outcome for customers if we can and we will get the APIs that are needed and the channels that are needed to move away from the kernel and completely have the same level of visibility that we have today. We will absolutely do that. Much like we move away from the kernel in macOS, much like we move away from the kernel in Linux and in the cloud, I think we to monitor the system. But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build.

Gray Powell: Thanks question coming from the line of Brad Zelnick with Deutsche Bank. You may proceed. Great. Thanks so much for taking the question. Tom, where I wanted to follow up on an earlier question about architecture. And specifically, what if anything you're expecting of Microsoft's upcoming cyber summit on September 10th. What changes view and vision that they might make so that the industry never sees eight and a half million windows and points go down again. And how might any of those changes impact central one and perhaps your competitive positioning. Thank you.

Tomer Weingarten: But as as we mentioned, you know, the focus is on new accounts, the focus is on adding more folks into our customer state, and that's exactly what we're doing. And it comes either with new accounts on endpoints, and you know, mind you, there's still 50% of this market for end point protection that's up for grabs, so there's a lot of road to be had in the end point market. But also with net new lands on cloud, and net new lands on our AICEM product. So all in all, you know, you see emerging, getting stronger, but not our emerging business getting stronger, but not just stronger because we cross sell an absolute using customers, but also because we lend net new with some of these emerging capabilities, which is by design. And this is exactly the balance that we're trying to strike, I mean, we're trying to go, and you know, expand our customer state as much as possible, while we continue and develop that motion for cross sell an absolute. At the end of the day, if you have a finite set of sellers, and you can decide which opportunities they go after, right now we're deciding that the dominant part goes after new account capture.

Speaker Change #106: in App.

Speaker Change #106: Ecosystem and Permission-based controls on Windows.

Speaker Change #106: That is not really happened or transformed the way that the windows operating system works.

Speaker Change #107: In general, I think that the Windows operating system proves again and again that it is quite fragile and I think that is the bigger issue at hand and I think that when you think about it that way.

Tomer Weingarten: So all in all, you know, you see emerging, getting stronger, but not our emerging business getting stronger, but not just stronger because we cross sell an absolute using customers, but also because we lend net new with some of these emerging capabilities, which is by design. And this is exactly the balance that we're trying to strike, I mean, we're trying to go, and you know, expand our customer state as much as possible, while we continue and develop that motion for cross sell an absolute. At the end of the day, if you have a finite set of sellers, and you can decide which opportunities they go after, right now we're deciding that the dominant part goes after new account capture.

Tomer Weingarten: So all in all, you know, you see emerging, getting stronger, but not our emerging business getting stronger, but not just stronger because we cross sell an absolute using customers, but also because we lend net new with some of these emerging capabilities, which is by design. And this is exactly the balance that we're trying to strike, I mean, we're trying to go, and you know, expand our customer state as much as possible, while we continue and develop that motion for cross sell an absolute.

Tomer Weingarten: It's a good question, and I think what everybody needs to try and kind of keep in the back of their mind is that the kernel discussion is not a new discussion. Microsoft has been trying to move away from from broad-based kernel access for the past 10 years, if not more. There's actually been, as far as I can recall, at least three different distinct initiatives to move away from the kernel, all of them have failed. So on one end, I'm encouraged that this discussion is being revisited, on the other hand, I think the problem is so convoluted that there is a good degree where we find ourselves, either in a multi-year transition, best case, or again with something that might prove to be more complex to achieve and it will take even longer than that. But all in all, you know, SentinelOne has always been an advocate of, you know, the best possible outcome for customers, if we can. And we'll get the APIs that are needed and the channels that are needed to move away from the kernel and completely, you know, have the same level of visibility that we have today. We will absolutely do that, much like we move away from the kernel on macOS, much like we move away from the kernel in Linux and in the cloud, I think we would welcome, if Microsoft had standardized the ability to monitor the system. But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build an app, you know, ecosystem and permission based controls on windows. That is not really happened or, you know, transformed the way that the windows operating system works. And generally, I think that the windows operating system proves again and again that it is quite fragile, and I think that is the bigger issue at hand. And I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel, given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days, and time will tell, but I'm hopeful that there's going to be constructive discussion.

Speaker Change #107: The level of refactoring that might need to take place.

Speaker Change #107: With your operating system I think is going to be substantial and I also think that for you know some other vendors that have kernel access.

Speaker Change #107: If they need to get out of the kernel, given the, you know, kind of, uh, inclusive amount of code that they put into the kernel, they would also be facing significant refactors.

Tomer Weingarten: So on one end, I'm encouraged that this discussion is being revisited. On the other hand, I think the problem is so convoluted that there is a good degree where we find ourselves either in a multi-year transition, best case, or again with something that might prove to be more complex to achieve and it will take even longer than that. But all in all, you know, SentinelOne has always been an advocate of, you know, the best possible outcome for customers, if we can, and we'll get the APIs that are needed and the channels that are needed to move away from the kernel and completely, you know, have the same level of visibility that we have today, we will absolutely do that.

Tomer Weingarten: At the end of the day, if you have a finite set of sellers, and you can decide which opportunities they go after, right now we're deciding that the dominant part goes after new account capture.

Thanks question coming from the line of Brad Zelnick with Deutsche Bank. You may proceed.

Operator: The next question coming from the line of Brad Zelnick with Deutsche Bank. You may proceed.

question coming from the line of Brad Zelnick with Deutsche Bank. You may proceed.

Speaker Change #108: The next question comes from the line of Adam Tindale with a Raymond James. You may proceed.

Brad Alan Zelnick: Great, thanks so much for taking the question. Tomer, I wanted to follow up on an earlier question about architecture, and specifically, what if anything you're expecting of Microsoft's upcoming cyber summit on September 10th. What changes view and vision that they might make, so that the industry never sees 8.e million windows endpoints go down again. And how might any of those changes impact SentinelOne and perhaps your competitive positioning? Thank you.

Adam Tindale: Okay, thank you. Tomer, one of the highlights whose quarter was Ereach positive, non-gap netting, come for the first time ever and congrats on that. If I'm listening though today's closing comments in his prepared remarks, it does sound like you're maybe beginning to re-valuate the trade-offs and growth and profitability. Certainly seems to make sense given the markets now more wide open than ever. But I guess the question would be if you're potentially asking shareholders to go through an investment journey with you, be helpful to give visibility into your thought process on that sort of the key factors that would go into your analysis on that decision. Any parameters that you might put on the magnitude of potential investment. Thanks.

Tomer Weingarten: Much like we move away from the kernel on macOS, much like we move away from the kernel in Linux and in the cloud, I think we would welcome, if Microsoft had standardized the ability to monitor the system. But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build an app, you know, ecosystem and permission based controls on windows that is not really happened or, you know, transformed the way that the windows operating system works.

Speaker Change #110: First of all...

Speaker Change #111: We have guidance and we follow guidance and I think that kind of sits.

Speaker Change #111: or Antarctica philosophy or Antarctica strength-based.

Speaker Change #111: and how we think about the rural journey.

Speaker Change #113: Our comments are just, you know, in a world where you can choose to invest or not invest, we want to make sure people understand there's a massive opportunity. This is a hundred billion dollar term. We got the leading technology in the market. So obviously I don't think our shareholders want to see us back away or back down by any degree. With that we have committed to an envelope and we're sticking to that envelope.

Tomer Weingarten: And generally, I think that the windows operating system proves again and again that it is quite fragile and I think that is the bigger issue at hand and I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days and time will tell. But I'm hopeful that there's going to be constructive discussion.

Tomer Weingarten: So on one end, I'm encouraged that this discussion is being revisited, on the other hand, I think the problem is so convoluted that there is a good degree where we find ourselves, either in a multi-year transition, best case, or again with something that might prove to be more complex to achieve and it will take even longer than that. But all in all, you know, SentinelOne has always been an advocate of, you know, the best possible outcome for customers, if we can. And we'll get the APIs that are needed and the channels that are needed to move away from the kernel and completely, you know, have the same level of visibility that we have today. We will absolutely do that, much like we move away from the kernel on macOS, much like we move away from the kernel in Linux and in the cloud, I think we would welcome, if Microsoft had standardized the ability to monitor the system. But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build an app, you know, ecosystem and permission based controls on windows. That is not really happened or, you know, transformed the way that the windows operating system works. And generally, I think that the windows operating system proves again and again that it is quite fragile, and I think that is the bigger issue at hand. And I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel, given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days, and time will tell, but I'm hopeful that there's going to be constructive discussion.

Speaker Change #113: I think that's all we're trying to say here. The opportunity is big. I think as we look at what we can potentially unlock in kind of the out years, that's always going to have to be balanced with our journey towards profitability. But I don't think you're going to see us.

Tomer Weingarten: But all in all, you know, SentinelOne has always been an advocate of, you know, the best possible outcome for customers, if we can. And we'll get the APIs that are needed and the channels that are needed to move away from the kernel and completely, you know, have the same level of visibility that we have today. We will absolutely do that, much like we move away from the kernel on macOS, much like we move away from the kernel in Linux and in the cloud, I think we would welcome, if Microsoft had standardized the ability to monitor the system. But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build an app, you know, ecosystem and permission based controls on windows. That is not really happened or, you know, transformed the way that the windows operating system works. And generally, I think that the windows operating system proves again and again that it is quite fragile, and I think that is the bigger issue at hand. And I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel, given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days, and time will tell, but I'm hopeful that there's going to be constructive discussion.

Tomer Weingarten: And we'll get the APIs that are needed and the channels that are needed to move away from the kernel and completely, you know, have the same level of visibility that we have today. We will absolutely do that, much like we move away from the kernel on macOS, much like we move away from the kernel in Linux and in the cloud, I think we would welcome, if Microsoft had standardized the ability to monitor the system. But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build an app, you know, ecosystem and permission based controls on windows. That is not really happened or, you know, transformed the way that the windows operating system works. And generally, I think that the windows operating system proves again and again that it is quite fragile, and I think that is the bigger issue at hand. And I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel, given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days, and time will tell, but I'm hopeful that there's going to be constructive discussion.

Speaker Change #113: Wearing away from the past that we've set. If anything, I think it's just on the pace of acceleration towards profitability, you can imagine a world where we would.

Adam Tindle: The next question comes from the line of Adam Tindle with Raymond James. You may proceed. Okay, thank you.

Speaker Change #113: In this lesson growth and show more profitability, I think what we're just trying to let folks know is that this is the balance, what you're seeing from us is the balance is what we feel is responsible and what we're following.

Tomer Weingarten: Tom or one of the highlights this quarter was you reach positive non-gap net income for the first time ever and congrats on that. If I'm listening though today's closing comment and his prepared remarks, it does sound like you're maybe beginning to re-evaluate the trade-offs and growth and profitability certainly seems to make sense given the markets now more wide open than ever. But I guess the question would be if you're potentially asking share holders to go through an investment journey with you, be helpful to give visibility into your thought process on that sort of the key factors that would go into your analysis on that decision and any parameters that you might put on the magnitude of potential investments. Thanks.

Tomer Weingarten: But again, this is a much broader question than just security providers and their access to the kernel, you know, pass attempts by Microsoft have revolved around trying to build an app, you know, ecosystem and permission based controls on windows. That is not really happened or, you know, transformed the way that the windows operating system works. And generally, I think that the windows operating system proves again and again that it is quite fragile, and I think that is the bigger issue at hand. And I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel, given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days, and time will tell, but I'm hopeful that there's going to be constructive discussion.

Speaker Change #114: Yeah, I would add to that, you know, and the end we're just weighing along term growth potential with delivering solid responsible and profitable financial profile. You know, when you look at the annual guidance, it's 15 percentage points of year over your margin improvement, and we just always really did this condensed the range that we already had for you, but I think we went from negative two to negative six to negative three to negative five. So we've honed in on a range, but we've maintained a range to preserve flexibility if there is a range.

Speaker Change #114: You know investments that we feel will add to growth for next year. So that's really the message we wanted to deliver to everyone. There's a great opportunity and we may take advantage of that.

Tomer Weingarten: And I think that when you think about it that way, the level of refactoring that might need to take place with your operating system, I think, is going to be substantial. And I also think that for, you know, some other vendors that have kernel access, if they need to get out of the kernel, given the, you know, kind of an intrusive amount of code that they put into the kernel, they would also be facing significant refactors. So I think, you know, it's early days, and time will tell, but I'm hopeful that there's going to be constructive discussion.

Tomer Weingarten: First of all, we have guidance, and we follow guidance, and I think that kind of sets our entire philosophy, our entire constraint base, and how we think about the growth journey. Our comments are just, you know, in a world where you can choose to invest or not invest, we want to make sure people understand there's a massive opportunity. This is a hundred billion dollar term, we got the leading technology in the market, so obviously, I don't think our shareholders want to see us back away or back down by any degree. With that, we have committed to an envelope, and we're sticking to that envelope, I think that's all we're trying to say here. The opportunity is big, I think as we look at what we can potentially unlock in kind of the out years, that's always going to have to be balanced with our journey towards profitability. But I don't think you're going to see us veering away, you know, from the path that we've, that we've set. If anything, I think is just on the pace of acceleration towards profitability, you know, if you can imagine a world where we would, you know, invest less in growth and show more profitability. I think what we're just trying to let folks know is that this is the balance, what you're seeing from us is the balance, is what we feel is responsible, and is what we're following. Yeah, I would add to that, you know, in the end, we're just weighing a long-term growth potential with delivering solid, responsible, and profitable financial profile. You know, when you look at the annual guidance, it's 15 percentage points of year over year margin improvement. And we just, all we really did was condense the range that we already had for you. But I think we went from negative two to negative six to negative three to negative five. So we've honed in on a range, but we've maintained a range to preserve flexibility. If there is, you know, investments that we feel will add to you know, to growth for next year. So that's really the message we wanted to deliver to everyone. There's a great opportunity and we may take advantage of that.

Speaker Change #115: Thanks for watching!

gray power: The next question is from the line of gray power with BTIG, you may proceed.

gray power: Thanks for taking the question and congratulations on the good results.

gray power: So look, I know you've had a lot of questions on the crowd strike out, if it's okay, I'd like to just ask one more. On the marketing side, just how aggressive are you being there following the incident? Do you have any specific programs in place to target crowd customers?

David Bernhardt: I think that's all we're trying to say here. The opportunity is big. I think as we look at what we can potentially unlock in kind of the out years, that's always going to have to be balanced with our journey towards profitability. But I don't think you're going to see us veering away, you know, from the path that we've, that we've set, if anything, I think is just on the pace of acceleration towards profitability, you know, if you can imagine a world where we would, you know, invest less in growth and show more profitability, I think what we're just trying to let folks know is that this is the balance. What you're seeing from us is the balance is what we feel is responsible and is what we're following.

Speaker Change #117: for potentially upset falling out of, like anything like a free six to twelve month limited trail crew to ease the transition costs or just anything else that you're doing that could maybe help you leverage the situation. Thank you.

Operator: The next question comes from the line of Adam Tindle with Raymond James. You may proceed.

Adam Tindle: Okay, thank you. Tomer, one of the highlights this quarter was you reach positive non-GAAP net income for the first time ever, and congrats on that. If I'm listening though today's closing comment and his prepared remarks, it does sound like you're maybe beginning to re-evaluate the trade-offs and growth and profitability. Certainly seems to make sense given the markets now more wide open than ever. But I guess the question would be if you're potentially asking share holders to go through an investment journey with you? Be helpful to give visibility into your thought process on that, sort of the key factors that would go into your analysis on that decision? Any parameters that you might put on the magnitude of potential investments. Thanks.

Speaker Change #117: Thanks.

Speaker Change #118: As I mentioned, we're just trying to be there for customers. Obviously, there's a lot of activity with our partner ecosystem, which is natural, but we have not devised any.

Speaker Change #119: Specific, you know, take out programs, we don't feel like that's warranted or needed.

Adam Tindle: But I guess the question would be if you're potentially asking share holders to go through an investment journey with you? Be helpful to give visibility into your thought process on that, sort of the key factors that would go into your analysis on that decision? Any parameters that you might put on the magnitude of potential investments. Thanks.

Speaker Change #120: We want to make sure that people understand the difference in architecture, so I think we put a lot of literature and collateral around the differences between the platforms we're trying to educate folks. I think more than anything, we're just trying to make sure that people understand the ground truth.

David Bernhardt: Yeah, I would add to that, you know, in the end, we're just weighing a long-term growth potential with delivering solid, responsible, and profitable financial profile. You know, when you look at the annual guidance, it's 15 percentage points of year over year margin improvement. And we just, all we really did was condense the range that we already had for you. But I think we went from negative two to negative six to negative three to negative five.

Speaker Change #121: of what happened. There's a lot of attempts to create alternative narratives. We've seen some polling attempts to try threatening customers publicly.

Speaker Change #121: We're obviously just trying to stay true to our North Star, which is no result of marketing, staying true to facts, and I think that we're doing it here once again.

Tomer Weingarten: With that, we have committed to an envelope, and we're sticking to that envelope, I think that's all we're trying to say here. The opportunity is big, I think as we look at what we can potentially unlock in kind of the out years, that's always going to have to be balanced with our journey towards profitability. But I don't think you're going to see us veering away, you know, from the path that we've, that we've set. If anything, I think is just on the pace of acceleration towards profitability, you know, if you can imagine a world where we would, you know, invest less in growth and show more profitability. I think what we're just trying to let folks know is that this is the balance, what you're seeing from us is the balance, is what we feel is responsible, and is what we're following.

David Bernhardt: So we've honed in on a range, but we've maintained a range to preserve flexibility. If there is, you know, investments that we feel will add to you know, to growth for next year. So that's really the message we wanted to deliver to everyone. There's a great opportunity and we may take advantage of that.

Tomer Weingarten: With that conclude, the question and answer session I would now like to turn the call over to Tomer Weingarten, CEO of Sentinel 1 for close remarks.

Tomer Weingarten: That concludes the Sentinel-1 second quarter fiscal year 2025 earnings conference call. Thank you for your participation. You may now disconnect your line.

Tomer Weingarten: I think is just on the pace of acceleration towards profitability, you know, if you can imagine a world where we would, you know, invest less in growth and show more profitability. I think what we're just trying to let folks know is that this is the balance, what you're seeing from us is the balance, is what we feel is responsible, and is what we're following.

Tomer Weingarten: Weingarten, Tomer Weingarten, Tomer Weingarten, Tomer Weingarten.

Dave Bernhardt: Yeah, I would add to that, you know, in the end, we're just weighing a long-term growth potential with delivering solid, responsible, and profitable financial profile. You know, when you look at the annual guidance, it's 15 percentage points of year over year margin improvement, and we just, all we really did was condense the range that we already had for you. But I think we went from -2 to -6 to -3 to -5. So we've honed in on a range, but we've maintained a range to preserve flexibility, if there is, you know, investments that we feel will add to you know, to growth for next year. So that's really the message we wanted to deliver to everyone, there's a great opportunity and we may take advantage of that.

Dave Bernhardt: So we've honed in on a range, but we've maintained a range to preserve flexibility, if there is, you know, investments that we feel will add to you know, to growth for next year. So that's really the message we wanted to deliver to everyone, there's a great opportunity and we may take advantage of that.

Gray Powell: Next question is from the line of Gray Powell, with BTIG. You may proceed. Okay, great.

Operator: Next question is from the line of Gray Powell, with BTIG. You may proceed.

Gray Wilson Powell: Okay, great, thanks for taking the question and congratulations on the good results. So look, I know you've had a lot of questions on the CrowdStrike outage, if it's okay, I'd like to just ask one more. On the marketing side, just how aggressive are you being there following the incident? And do you have any specific programs in place to target crowd customers for potentially upset following the outage? Like anything like a free 6 to 12 month limited trial period to ease the transition costs? Or just anything else that you're doing that can maybe, you know, help you leverage the situation. Thank you.

Gray Powell: Thanks for taking the question and congratulations on the good results. So look, I know you've had a lot of questions on the crowd strike out. If it's okay, I'd like to just ask one more on the marketing side. Just just how aggressive are you being there following the incident? And do you have any specific programs in place to target crowd customers for potentially upset following the outage like anything like a free six to 12 month limited trial period to ease the transition costs or just anything else that you're doing that can maybe, you know, help you leverage the situation.

Tomer Weingarten: Thank you. As I mentioned, we're just trying to be there for customers. Obviously, there's a lot of activity with our partner ecosystem, which is, which is natural, but we have not devised any specific, you know, take out programs. We don't feel like that's warranted or needed. You know, we want to make sure that people understand the difference in architecture. So I think we put a lot of literature and collateral around the differences between the platform.

Thank you.

Tomer Weingarten: As I mentioned, we're just trying to be there for customers. Obviously, there's a lot of activity with our partner ecosystem, which is, which is natural, but we have not devised any specific, you know, take out programs. We don't feel like that's warranted or needed, you know, we want to make sure that people understand the difference in architecture. So I think we put a lot of literature and collateral around the differences between the platform, we're trying to educate folks. I think more than anything, you know, we're just trying to make sure that people understand the kind of the ground truth of what happened. There's a lot of attempts to create alternative narratives, you know, we've seen some appalling attempts to try and threaten customers publicly. You know, we're obviously just trying to stay true to our North Star, which is no resilience marketing, staying true to facts. And I think that we're doing it here once again.

Tomer Weingarten: I think more than anything, you know, we're just trying to make sure that people understand the kind of the ground truth of what happened. There's a lot of attempts to create alternative narratives, you know, we've seen some appalling attempts to try and threaten customers publicly. You know, we're obviously just trying to stay true to our North Star, which is no resilience marketing, staying true to facts. And I think that we're doing it here once again.

Tomer Weingarten: We're trying to educate folks. I think more than anything, you know, we're just trying to make sure that people understand the kind of the ground truth of what happened. There's a lot of attempts to create alternative narratives. You know, we've seen some polling attempts to try and threaten customers publicly. You know, we're obviously just trying to stay true to our North Star, which is no resilience marketing, staying true to facts. And I think that we're doing it here once again.

Tomer Weingarten: That concludes the question and answer session. I would now like to turn the call over to Tomer Weingarten, CEO of SentinelOne for close remarks. Thank you, everybody. Appreciate yours on today.

Operator: That concludes the question and answer session. I would now like to turn the call over to Tomer Weingarten, CEO of SentinelOne for close remarks.

Tomer Weingarten: I would now like to turn the call over to Tomer Weingarten, CEO of SentinelOne for close remarks. Thank you, everybody. Appreciate yours on today.

Tomer Weingarten: Thank you, everybody, I appreciate your time today.

Operator: That concludes the SentinelOne second quarter fiscal year 2025 earnings conference call. Thank you for your participation. You may now disconnect your line.

Operator: You may now disconnect your line.

Q2 2025 SentinelOne Inc Earnings Call

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